Hong Kong’s Crypto Approval List Excludes Ripple’s XRP, Triggering a 12% Price Drop

The post Hong Kong’s Crypto Approval List Excludes Ripple’s XRP, Triggering a 12% Price Drop appeared first on Coinpedia Fintech News

Ripple’s XRP is once again making headlines, but this time for an unexpected reason. Hong Kong’s Securities and Futures Commission (SFC) recently released its list of approved cryptocurrencies for trading, and XRP is nowhere to be found. 

While Bitcoin, Ethereum, Avalanche, and Chainlink made it into the listing, XRP’s absence has sparked concerns, leading to a sharp 12% price drop.

Why Did Hong Kong Exclude XRP?

The Hong Kong Securities and Futures Commission (SFC) has been carefully regulating the crypto market, ensuring that only select cryptocurrencies meet the necessary standards. 

The regulator recently granted licenses to PantherTrade and YAX, allowing them to operate as crypto trading platforms. However, the approved list of tradable cryptocurrencies was limited to a few major assets, leaving XRP out.

Many believe that XRP’s exclusion is linked to Ripple’s ongoing legal battles, particularly in the United States. The lawsuit with the SEC has left uncertainty over whether XRP should be classified as a security or a currency. 

Therefore, Hong Kong’s financial authorities may have taken a cautious approach by avoiding potential legal complications tied to XRP’s status on the international level for now.

Hong Kong’s Robust Crypto Regulation 

Additionally, Hong Kong’s strict regulatory framework plays a key role in it. As, the SFC has set high standards for crypto exchanges, including rigorous anti-money laundering (AML) and counter-terrorism financing (CTF) measures.

So far, only ten platforms have met the SFC’s high standards, and the commission has extended its approval deadline to review more exchanges.

XRP’s Price Takes a Massive Hit

The news of XRP’s exclusion had an immediate impact on its market value. The token fell by over 12%, dropping to around $2.45. The decline also affected open interest in XRP, which plummeted to a monthly low of $3.52 billion, a sharp contrast from its all-time high of $7.62 billion recorded in January.

From a technical standpoint, XRP is currently trading below key moving averages, including the 10-day EMA at $2.48 and the 21-day EMA at $2.54. This suggests that XRP could face further downward pressure in the short term.