European crypto payment processing company CoinGate has said that will suspend the use of XRP for payments due to the ongoing legal fight facing Ripple. The action will prevent more than 4,000 merchants from accessing the cryptocurrency as a means of payment as of January 15, 2021. The move follows public warnings against the company for continuing to use XRP for payment despite the case against Ripple.
“As of January 15, 2021, we will suspend trading and processing payments in XRP. All funds you have collected in XRP are safe and valid for withdrawal until further notice. Sorry for the inconvenience. Contact (email protected) if you have any problems! "
On December 22, 2020, the SEC filed a lawsuit against Ripple and its executives for allegedly conducting sales of an unregistered security, XRP. Although there is no verdict yet on whether XRP should be considered a security, major exchanges such as Coinbase and digital asset manager Grayscale have removed XRP from their platforms.
Hopefully, such issues have caused the price of XRP to drop significantly. Ripple has expressed its determination to proceed with the case to show that XRP is not a security. The XRP community is also helping the cause by signing petitions for the US government to revoke the SEC's actions.
The first request was to have the government regard XRP as a currency and not as a security. A new petition has been launched for the government to review the charges against Ripple, as they believe the charges are scandalous.
Meanwhile, XRP Ledger-based cryptocurrency exchange GateHub has said that it will not remove XRP and will continue to support it until XRP is judged to be a security. The platform has made a commitment to support XRP in these difficult times as it believes that XRP is not a security as the SEC alleges.