While large overseas virtual asset exchanges such as Coinbase (www.coinbase.com) and OKCoin (www.okcoin.com) have stopped trading Ripple (XRP), a similar move has begun on Korean virtual asset exchanges.
Coredax (www.coredax.com), a Korean virtual asset exchange, announced on the 30th that it will completely suspend XRP transactions. The transaction suspension is on January 15, 2021, and members must withdraw all XRP in the exchange by February 1.
The reason is the lawsuit filed by the Securities and Exchange Commission (SEC) against Ripple. Foreign exchanges have also stopped trading XRP for the same reason.
The US Securities and Exchange Commission (SEC) filed a lawsuit against the issuer, Ripple, on the 22nd, seeing XRP as “unregistered securities”. Securities distribution requires compliance with federal securities laws, but the SEC claims that Ripple sold XRP without any action under the securities laws.
If XRP is defined as securities, XRP cannot be traded on general virtual asset exchanges in the United States. This is because most exchanges, including Coinbase, do not have a stock trading license. As a result, Bitstamp, one of the major exchanges, stopped trading XRP by US customers early on, and Coinbase stopped trading afterwards.
It is predicted that not only US exchanges but also non-US exchanges such as OKCoin will stop trading. Virtual asset influencer 'NekoZ' said, “All exchanges with US customers (not just US exchanges) will need to delist XRP. The lawsuit is a big issue.”
However, Korean virtual asset exchanges have very few US customers. This is because most exchanges have some restrictions on the use of foreign customers due to taxation issues.
Regardless of the number of customers, Coredax is in a position to proactively respond to risks. Yo-song Lim, CEO of Coredax, said, "SEC's movement has a symbolism that can have a great influence on the virtual asset trend in the future. We prepare for more than what is required by current Korean law, We are managing it in advance.”