Important update on XRP
News · 8 January 2021Elizabeth McGrath
The latest XRP developments
The U.S. securities regulator (the Securities and Exchange Commission or SEC) has recently filed a lawsuit against the company that offers XRP, Ripple Labs Inc. The SEC has alleged that XRP should be classified as a ‘security’ rather than a ‘currency’, which would require XRP to comply with certain registration requirements before it is able to be sold within the United States.
The legal action has caused many crypto exchanges around the world to either delist or suspend XRP trading which has seen the XRP price fall significantly. The outcome of this lawsuit is uncertain, as is the effect it will have on the regulatory treatment of XRP in other jurisdictions around the world.
At the time of writing this update, our partner exchanges continue to list XRP so you can still buy and sell XRP through your Revolut account. However, please note that the situation is evolving quickly and the price of XRP is extremely volatile.
The beneficial interest you hold in any XRP with Revolut does not entitle you to directly withdraw your XRP balance to an external wallet. This means that if XRP were to be delisted by all of our partner exchanges, Revolut would no longer be able to offer you the ability to buy or sell XRP which may result in the loss of all your XRP holdings.
We’ll use our best endeavours to provide you with advance notice of any changes to our XRP services, including the buying and selling of XRP. However if circumstances are beyond our control or in the event of an emergency we might not be able to do so.
Reminder of the risks associated with cryptocurrencies
There are significant risks associated with buying and selling cryptocurrencies. The value of a cryptocurrency can change rapidly and it is much more likely to fluctuate than normal fiat currency. It can rapidly increase or decrease at any time. It may even fall to zero, which means it’s possible to lose your entire holding. Crypto is also unregulated and not protected by investor compensation schemes. You may need to pay tax upon any gains made.
Revolut will not be liable for any losses you may incur if a cryptocurrency’s value falls to zero, or if a cryptocurrency is delisted. More information on the risks associated with cryptocurrencies can be found in our terms and conditions. Our terms and conditions also include information about what to do if you’re unhappy with our service and want to make a complaint.
We will continue to monitor the situation closely and will keep you informed of changes that may impact your XRP holdings. We recommend you stay informed about these developments when considering what to do with your XRP holdings.
This update is for informational purposes only. You should not construe any such information as legal, tax, investment, financial or other advice. You should consider whether the information is appropriate to your needs and where appropriate seek independent professional advice before buying or selling cryptocurrency through your Revolut account.