will suspend trading for US residents on January 29, the San Francisco-based cryptocurrency exchange announced on Friday.
While US users will still be able to deposit or withdraw XRP after that date, they have just two weeks to continue trading the beleaguered digital asset.
“We may begin implementing this process at any time on January 29, 2021, so all U.S. clients are strongly encouraged to resolve their positions prior to that day,” the exchange wrote.
Labs, along with CEO Brad Garlinghouse and Executive Chairman Chris Larsen, were sued by the US Securities and Exchange Commission for $1.3 billion in December for their role in selling XRP. Several Ripple founders created XRP in 2012.
The price of XRP has dropped by roughly half since the SEC announcement. On December 21, it was brushing up against $0.60. It’s currently at around $0.28.
Other exchanges have already moved to suspend XRP trading, including Binance.US,, and Bitstamp.
As for whether trading might continue, Kraken noted: “We are monitoring the situation regarding the SEC’s filing and will adapt according to any new developments.”
The giant financial services company UBS Wealth Management is the latest organization to warn investors about the potential risks of the cryptocurrency industry. The entity has issued guidelines indicating that the price of each digital asset could plummet to zero at any point, and people need to be prepared to lose it all.
UBS Wealth Outlines Crypto Risks
The Switzerland-based giant wealth manager issued a warning aimed at investors cited by Bloomberg. It reads that despite the recent bullish trends within the digital asset field in which most cryptocurrencies skyrocketed in a relatively short time, investors should be prepared that they “could still lose all their money.”
UBS Global Wealth Management highlighted that the industry is still largely unregulated and could recently face competition from central banks in the face of CBDCs.
“There is little in our view to stop a cryptocurrency’s price from going to zero when a better-designed version is launched or if regulatory changes stifle sentiment. Netscape and MySpace are examples of network applications that enjoyed widespread popularity but eventually disappeared.” – wrote the Chief Investment Officer for global emerging markets, Michael Bollinger.
The entity also questioned the narrative that cryptocurrencies are indeed used for payments and said that most people still tend to go with fiat currencies.
Although UBS admitted that price could still increase in the short-term, the report advised that investors “must limit the size of their investments to an amount they can afford to lose.”
Regulators Warn As Well
It seems that the parabolic price increase in the past several months has caught the attention of regulators as well. CryptoPotato reported earlier that the UK Financial Conduct Authority (FCA) and the New Zealand Financial Markets Authority (FMA) published similar warnings in the span of a week.
The FCA focused on potential threats coming from unregulated companies and projects that offer “too good to be true” returns on cryptocurrency investments. On the other hand, the FMA outlined the notorious volatility in the crypto market, saying that assets could plummet by double-digits in just a day.
Interestingly, both watchdogs, similarly to UBS, said that investors should be ready for a worst-case scenario in which they “lose all money” allocated into digital assets.
Featured Image Courtesy of CGNT
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