Hong Kong Trading Platform OSL Suspends XRP Services as SEC Sues Ripple

The SEC is accusing Ripple of violating federal securities laws via sales of the XRP cryptocurrency to retail consumers.

Dec 23, 2020 at 9:56 a.m. UTC
Updated Sep 14, 2021 at 10:47 a.m. UTC

A lawsuit against Ripple Labs brought Tuesday by the U.S. Securities and Exchange Commission (SEC) is already having knock-on effects.

  • OSL, the first regulated digital asset trading and brokerage platform in Hong Kong, announced it is suspending trading in the XRP cryptocurrency at the heart of the SEC action.
  • The platform tweeted Wednesday:
  • The SEC is accusing Ripple of violating federal securities laws via sales of XRP to retail consumers.
  • Ripple is said to have raised $1.3 billion over a seven-year period in ongoing sales of XRP to retail investors.
  • According to CoinDesk's reporting, at least one U.S. exchange opted to delist the cryptocurrency ahead of the lawsuit's filing.
  • "As part of OSL’s rigorous compliance program, digital assets are subjected to regular due diligence reviews to assess their suitability for trading on our platform," said Wayne Trench, CEO of OSL.
  • Based on the results of the reviews, the firm may suspend trading in certain assets either temporarily or permanently, he said.
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