CHICAGO – December 22, 2020 – Effective immediately, Beaxy Exchange is halting all XRP derived trading activity. Withdrawals will remain enabled until further notice.
The announcement earlier today that the U.S. Securities and Exchange Commission (SEC) charged Ripple Labs, Inc. and two of its executives for the sale of unregistered securities renders Ripple and the XRP cryptocurrency legally dubious and therefore puts Beaxy’s users at risk. In a constantly evolving regulatory landscape, Beaxy Exchange strives to adjust to developments as rapidly as possible.
Commenting on reports that the SEC has charged Ripple Labs for conducting an unregistered security sale, Beaxy’s Head of Operations, Naeem, had this to say, “The SEC and Ripple Labs have been debating XRP’s legal status for years. So the news of SEC charges against Ripple are not unexpected. That being said, Beaxy Exchange has an obligation to operate with regulatory compliance as a priority. In this case, that means halting all trading of XRP on Beaxy.
The activity alleged by the SEC, if proven, is inconsistent with our license as a U.S. money services business. Should it ultimately be determined through competent legal process after the present circumstances that XRP is not an unregistered security, Beaxy would be open to resuming support for XRP trading pairs.