By Solomon Odunayo
Although a number of crypto-related firms have turned their backs against the digital token XRP since the lawsuit filed by SEC a few days ago, some still have the trust of Ripple and XRP in their hearts.
Going by a statement released by the Japan-based financial services company, SBI Holdings, under Japanese law, XRP is not a security, but a cryptocurrency asset.
Read Also: Even If XRP Is Declared a Security, Ripple Would Still Succeed –Brad Garlinghouse
The statement comes after the United States Securities and Exchange Commission (SEC) charged Ripple to court for selling XRP to retail investors since 2013 while failing to register the digital asset as a security in the United States.
This claim was emphasized by SBI with a research article by Sadakazu Osaki of the Nomura Research Institute, which indicates that XRP is a cryptocurrency under Japanese law and not a security in the Asian country.
XRP Dips as OKCoin Suspends XRP Trading and Deposits
OKCoin, a US-based cryptocurrency exchange has announced its plan to suspend XRP trading and deposits on 4th January 2021 till further notice.
The exchange announced as follows:
“As the lawsuit proceedings take place, we have determined it is the best course of action to suspend XRP trading and deposits on OKCoin.”
According to the report, the exchange will suspend spot trading, margin trading, and deposits from 7:00 PM on 4th January 2021. The report added that users that borrowed XRP and USD should return the funds by 7:00 PM on 3rd January 2021.
Read Also: Cardano Founder Charles Hoskinson Says XRP Is Not a Security but Questions Its Mode of Distribution
“It is likely that this situation will take time to reach a resolution. We will proactively inform our customers when we have information that may change our position,” said OKCoin.
Speaking to The Block, the CEO of OKCoin, Hong Fang, said, “business decision taken in the best interest of our customers pending further guidance from the SEC on the case with Ripple.”
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