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Nia Simpson
XRP Faces 12% Decline After Missing from Hong Kong’s Approved Crypto List
XRP has seen a 12% drop in price following its exclusion from Hong Kong’s approved cryptocurrency list. This decision is believed to be impacted by Ripple’s legal challenges with the SEC, leading to increased caution among Hong Kong regulators. The strict regulatory environment further complicates XRP’s market standing.
XRP has faced a notable setback following its exclusion from Hong Kong’s recently approved cryptocurrency list, resulting in a 12% decline in its market price. The Hong Kong Securities and Futures Commission (SFC) granted approval to several prominent cryptocurrencies, such as Bitcoin, Ethereum, and Chainlink, but notably omitted XRP. This omission raises questions about the future of XRP, especially considering its ongoing legal complexities with the U.S. SEC, which may have influenced regulatory caution in Hong Kong.
The SFC has been meticulous in regulating the crypto landscape, ensuring only specific cryptocurrencies meet stringent standards for trading. This focus on regulatory compliance led to platforms like PantherTrade and YAX receiving operational licenses. However, with a limited list of accepted cryptocurrencies, XRP was ultimately left out, reflecting the challenges it faces amid its legal issues.
Many analysts suggest that XRP’s exclusion is closely linked to Ripple’s legal battles with the SEC, which have cast doubt on the classification of XRP as either a security or currency. This ongoing uncertainty appears to prompt the Hong Kong authorities to err on the side of caution, thereby avoiding potential complications that may arise from XRP’s ambiguous legal standing.
Hong Kong’s regulatory environment is characterized by strict guidelines, requiring crypto exchanges to adhere to robust anti-money laundering (AML) and counter-terrorism financing (CTF) protocols. As of now, only ten cryptocurrency platforms have met these high standards. Consequently, the SFC is conducting an extended review to assess additional platforms for compliance.
In the aftermath of XRP’s exclusion from the approved list, its market performance suffered significantly, with a 12% decrease in price, bringing it down to approximately $2.45. Concurrently, XRP’s open interest fell sharply to a monthly low of $3.52 billion from an all-time high of $7.62 billion earlier in the year. From a technical standpoint, XRP is trading below important moving averages, indicating potential future downward pressure as market sentiment remains volatile.
The recent event of XRP’s exclusion from Hong Kong’s approved cryptocurrency list highlights significant implications for the token amid its existing legal struggles. Ripple, the issuer of XRP, is embroiled in a legal dispute with the U.S. SEC, which could be influencing global perspectives on XRP’s regulatory status. Hong Kong’s SFC has established rigorous standards that cryptocurrencies must meet, further complicating XRP’s acceptance in the region.
In summary, XRP’s absence from Hong Kong’s approved cryptocurrency list, linked to ongoing legal challenges and stringent regulations, has prompted a sharp price drop. The regulatory landscape in Hong Kong reflects a cautious approach to crypto investment, particularly with uncertain legal classifications. Adjusting quickly in response to this evolving situation will be critical for the future positioning of XRP in the global marketplace.
Original Source: coinpedia.org
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