Swiss company 21 Shares has removed XRP from its ETPs
According to the company’s CEO, Hany Rashwan, an issue has arisen with the company’s compliance with corporate rules regarding securities.
In fact, as reported on the appropriate page of their site, their offers are not recommendations to buy or sell security, so as long as there is doubt that XRP may be a security this token will like Ethereum Code review not be in line with company rules.
As a reminder, the SEC has filed a lawsuit against Ripple, the company that created XRP, accusing them of selling XRP as security in the past.
The issue with the SEC is still open, and nothing is final yet, but several crypto service providers are considering exiting the XRP market in order to avoid possible problems in the future.
For example, Bitstamp let it be known via Twitter that as of 8 January 2021, XRP exchanges and deposits for all US customers will be stopped.
Theoretically the issue only affects the US, and US resident customers, but for example in the case of 21Shares the decision was made even though its ETPs are not tradable on US exchanges.
“The risk on both sides is high, especially with a number of large over-the-counter (OTC) trading desks exiting the XRP market, notably Jump Trading and Galaxy Digital.”
21Shares, ETPs on XRP are still there
In fact on the website of 21Shares, formerly known as Amun, the tab for the ETP on XRP (AXRP) is still there, probably because the situation is still uncertain, and in any case for now it only concerns the USA.
Moreover, it is possible that the lawsuit with the SEC will continue for a long time, although the outcome is far from certain. However, if the US government agency’s accusations are confirmed, there is a possibility that the problem will spread to other countries.
The price of XRP has been suffering for a few days now, despite the massive increases in other cryptocurrencies such as BTC and ETH, and has halved in just over a week, from $0.6 to $0.3.