Expect a rocky road ahead in 2021 for tokens as regulators are just getting started to enforce the law.
Several digital currency exchanges and OTC desks including Coinbase (NASDAQ: COIN), Bittrex, and Genesis announced that they would be suspending and terminating support for XRP trading pairs following the U.S. Securities and Exchange Commission’s (SEC) move to file a lawsuit against Ripple Labs, the company behind XEP.
The securities regulator also sued Ripple CEO Brad Garlinghouse and co-founder Chris Larsen for allegedly conducting a $1.3 billion unregistered securities offering. The announcement created a ripple effect—no pun intended—and set off an avalanche in XRP markets. Ripple’s market cap has plummeted by roughly 52%, losing its third-ranked position on the top 10 digital currencies by market cap.
Also this week, another class action suit was filed against Coinbase. The claimant is seeking recovery for customers who paid commissions for XRP trading. The law suit claims, Coinbase’s actions were both unlawful and fraudulent. The allegation says, based on Coinbase’s technological integration into XRP’s nodes and statements made by Ripple executives, the exchange would have known XRP was a security and not a commodity.
The recent actions against tokens is expected to spur additional lawsuits against exchanges that have listed and allowed customers to trade unregistered securities.
In other news, the tiny Pacific nation of Tuvalu is poised to become the first country to go fully digital—and it’s all going to be on Bitcoin SV. The country has announced its plans to go paperless, managing its operations on the Bitcoin SV ledger. The Tuvaluan government has partnered with BSV consultancy firm Faiā as well as blockchain infrastructure providers nChain and Elas Digital.
Situated in the South Pacific Ocean, Tuvalu is a remote archipelago with a population of under 12,000. With very few natural resources, the island nation is forced to look for new economic opportunities. In the past, Tuvalu has been known for selling the “.TV” internet top level domain to television networks and production companies.
Bitcoin Association President Jimmy Nguyen commented on this development, tweeting, “Small country, BIG Vision.” He adds “It’s a WIN for the island country plus BSV utility.” Nguyen also congratulates all parties involved in the “amazing collaboration.”
Small country, BIG vision.
Tuvalu to be world’s first paperless society using #BitcoinSV as digital public ledger. It’s a WIN for the island country + #BSV utility.
Congrats @TuvaluGov, @nChainGlobal, @faiacorp & @ElasDigital on AMAZING collaboration.https://t.co/cUGThPUgnK
— Jimmy Nguyen (@JimmyWinSV) December 21, 2020
Lastly, the Bitcoin-powered online review platform TrueReviews has now rebranded as Britevue. The platform is focused on getting Bitcoin into the hands of newcomers. How exactly? It’s designed in such a way that will have its users generating revenue from day one. Bitcoin will be given out to new users in exchange for data. Users will be able to sign up, answer some questions about their hometown, and get money instantly to be used on the site. Britevue hopes to be the go-to platform to find the best places to eat or visit when they are in your town.
The platform will be launching in early 2021.
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