Why Does BITBOX Crypto Exchange Delist XRP?

Bitbox, owned by LINE, said it would delist all XRP trading pairs from its platform by mid-January 2020. Meanwhile, XRP, Ripple’s native cryptocurrency increased by more than 15 percent in merely two days. Why does BITBOX Crypto Exchange delist XRP at this time? Will XRP price continue its bearish trend? 

07 January, 2020 | AtoZ Markets – Bitbox was launched in July 2018 in Singapore and it is owned by the messaging giant LINE. The Japanese messaging giant received the crypto exchange license for Bitbox on the 6th of September 2019. The Japanese Financial Services Agency awarded the crypto exchange license to LVC Corp. This Singaporean-based firm manages the digital asset and blockchain units of LINE, which also manages Bitbox from Singapore.  

BITBOX Crypto Exchange Delists XRP: What's Next for Traders?

In a statement on Monday, Bitbox said it is going to delist XRP pairs tied against bitcoin (BTC), ether (ETH) and Tether (USDT). The delisting will take place on January 16. As a result, users will no longer be able to trade and deposit XRP, and they have until February 16 to withdraw their funds.

Bitbox did not give clear reasons for this change. However, the exchange said XRP did not meet its standards based on performance, reliability, liquidity or legislative and regulatory requirements. 

“If a coin does not meet our standards due to its performance, reliability, liquidity or the requirements of law and regulation, it will be removed from our exchange. To protect your assets and interests, we give sufficient notice before delisting.”

AtoZ Markets team contacted Bitbox for more information about the case, and is yet to receive comments from the crypto exchange.

How Does XRP Delisting Impact XRP Price?

The price of the XRP is still below $0,25. However, the delisting inconveniently came right after the XRP price pumped by more than 12%, after months of bleeding. In overall, the crypto market is being led by the bullish rally of Bitcoin. In fact, BTC saw a jump of more than 15% in just the last 7 days and it is trading at $8347 at the time of press. 

According to AtoZ Markets' senior market analyst, the current Ripple price dip could be as a result of the report that BitBox will be removing some crypto pairs involving XRP. In overall, the trend of XRP remains bearish.

Read More: South Korea Allows Bitcoin Derivatives for Financial Institutions

Ripple has a Strong Presence in the Asian Market

Considering that Ripple has a strong presence in the Asian market, the announcement must be surprising for the XRP community. CipherTrace CEO David Jevans made a shocking revelation by announcing that almost all Japanese banks are working with XRP.

Ripple is also a strong advocate for regulatory clarity around the world. In July 2019, the company’s CEO, Brad Garlinghouse, wrote a letter to the United States Congress to advocate for “responsible actors.” He urged legislators not to paint all digital assets with one broad brush.

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