More and more cryptocurrency companies are suspending their XRP services, while the U.S. Securities and Exchange Commission filed a lawsuit against Ripple and its two executives.
B2C2, which operates as a market maker in the cryptocurrency industry, became the latest company to stop trading XRP for its clients in the US.
According to the information obtained, B2C2 USA, which was established last year, legally stopped trading for the digital token of the troubled company last Thursday. The US unit of the market maker took a drastic step after warning its customers of “more action on trading XRP products” in a note released last week. B2C2’s customers outside the US will be able to continue trading XRP.
B2C2 was acquired by Japanese SBI Holdings earlier this month. The Japanese firm owned a minority stake in the UK-based crypto company after a $ 30 million investment in July, and is now fully owned. SBI is one of Ripple’s leading investors and the two run a joint venture in Japan. The holding has even distributed XRP as stock benefits to shareholders in the past.
Breaking Ties with Ripple
The de-listing of XRP began before the official confirmation of the SEC’s lawsuit against Ripple. CrossTower decided to cut ties with XRP after the token fell hours after a warning from Ripple’s CEO. OSL and Beaxy were among the first to remove XRP from the list after case approval. While major exchanges like Coinbase and Binance still allow XRP trading, many key market players are distancing themselves from Ripple. Galaxy Digital of Chicago-based Jump Trading and Mike Novogratz announced that it has stopped creating a market for XRP.
Also, European crypto exchange Bitstamp has suspended XRP trading, but only for US-based customers. Simplex, a popular crypto payment processor, started blocking XRP transactions. Likewise, Bitwise announced that the XRP position was liquidated on the grounds that the fund “will not invest in assets that are likely to be considered securities under federal or state law.”