Holly Chase

6 months ago

Why are Canadian Crypto Exchanges Delisting XRP?

Why XRP delisted on Canadian crypto exchanges

Bitbuy has become another Canadian crypto exchange to delist XRP. Previously, Newton and Coinsmart also removed XRP. It seems like NDAX and Coinberry will announce the same news soon. So why is XRP being removed from Canadian crypto exchanges? 

XRP has been the centre of a legal battle in which the US Securities and Exchange Commission (SEC) slapped Ripple with a lawsuit, alleging that XRP is a security. In order to comply with the SEC, American crypto exchanges are not allowed to trade securities. The uncertainty surrounding XRP led to major US-based crypto exchanges such as Coinbase and Kraken to delist XRP. 

Bitbuy recently became the first Canadian cryptocurrency to gain approval by the Ontario Securities Commission (OSC) to operate as a fully registered marketplace. While this is a huge feat for Bitbuy, it means that the crypto exchange must follow the OSC’s guidance. Crypto exchanges operating under the OSC’s jurisdiction are not allowed to trade securities. Even though the outcome of the lawsuit is yet to be determined, Bitbuy decided it is safer to delist it.

Bitbuy & Newton stated that they took the opinions of international regulators into account when making their decision.

As a regulated marketplace, Bitbuy & Newton will now be able to offer Canadians true market prices, more altcoins, no trading limits and greater confidence and transparency. However, it means Bitbuy & Newton must abide by the OSC’s rules and remain compliant. Their choice to delist XRP shows the OSC that they take compliance seriously. 

In January 2022, Bitbuy along with other Canadian crypto exchanges will remove its XRP/BTC and XRP/CAD trading pairs, but they may relist XRP in future depending on the outcome of Ripple’s legal battle.

If you have XRP in your account then you will need to remove it or risk losing it. You can either:

  • Sell you XRP for Canadian dollars and withdraw it to your bank account
  • Trade XRP for Bitcoin 
  • Send your XRP to a private crypto wallet available for Canadians
  • Send XRP to another exchange that still lists XRP

It is unlikely that XRP will be delisted everywhere, particularly exchanges that are not based in Canada or the US. 

Can I Still Buy XRP?

Europe-based exchange CoinField still lists XRP and you can buy it directly with Canadian dollars or swap it for the available pairs. 

Binance recently stopped operations in Ontario due to the OSC’s regulations. Binance provides margin, futures and leverage trading – things that the OSC does not allow. Therefore, Binance is unlikely to delist XRP. 

You can also move your XRP to Gate.io, Uphold, or Kucoin. All of these exchanges are based off-shore and therefore are not obligated to follow the OSC’s guidance or the SEC’s determination on XRP. We have reviewed each of these exchanges so you can choose the best one for you.  Read our full guide on how to buy XRP in Canada here.

The SEC regulates the United States. Its rules do not apply to the rest of the world. While Canadian regulations often closely follow that which goes on in the US, crypto exchanges in other parts of the world do not need to adhere to what the SEC says. XRP will therefore continue to be available on international exchanges unless regulators in other countries also issue guidance on XRP. 

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Author

Holly Chase first discovered Bitcoin in 2012 and has been a crypto enthusiast ever since. She has been writing about cryptocurrency and blockchain since she started working at a cryptocurrency exchange in 2020.
 
Holly has a Youtube channel, where she shares videos about crypto, DeFi, and passive income.