FX Broker ThinkMarkets Switches XRP Trades to Close Only Mode
The lineup of forex brokers that have restricted trading on the XRP pairs, following an SEC complaint against its developer, has been growing bigger. Among the latest entries into this group of brokers is ThinkMarkets.
In a note to its clients, FCA-regulated ThinkMarkets, a multi-asset brokerage offering forex, CFDs, and commodity products, said it had transferred trades on XRPUSD pairs to the close only mode until further notice.
The new restrictions take effect as of market open on Jan 4. Clients that hold positions in XRPUSD will be able to close them whenever they wish post this date, but no new positions will be allowed.
As Finance Magnates reported earlier, many FX brokers said they would take special measures in anticipation of higher volatility and trading volumes. The SEC’s lawsuit has also promoted social trading network eToro to join the ranks of cryptocurrency platforms suspending XRP trading.
Although the US regulators’ action is against Ripple and its executives, not the XRP itself, most online brokers have already ironed out their plans to protect themselves and their customers from any sharp market shifts that have the potential to wipe out account balances in an instant.
Major crypto exchanges including Crypto.com, OKCoin, Bitstamp and Coinbase, as well as crypto market maker B2C2, payment providers Simplex and Wirex have either temporarily suspended XRP trading or removed it entirely.
Soon after the SEC announced charges against Ripple, lesser-known crypto platforms such as OSL, CrossTower and Beaxy suspended XRP trading effective immediately and until further notice. Further, crypto fund managers such as Bitwise and Grayscale liquidated part or all of their positions in XRP, citing regulatory concerns.
XRP price, however, was resilient on Thursday against the new wave of the token delisting as bargain hunters are seemingly taking advantage of cheaper prices to pile into the fourth-largest cryptoasset. The XRP token has crashed from $0.64 to $0.20 in under a week, losing 75% in value since hitting a two-year high last motnh, as traders and investors process the news.
The SEC complaint accused Ripple of effectively raising $1.3 billion via ongoing, unregistered securities offerings since 2013.
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