Ripple’s XRP has been left out of Hong Kong’s list of approved cryptocurrencies for trading, raising fresh concerns about its regulatory standing in global markets.
The Securities and Futures Commission (SFC) released a list of digital assets that can be legally traded on licensed platforms, but XRP was notably absent.
This omission comes despite approvals for major cryptocurrencies like Bitcoin, Ethereum, Avalanche, and Chainlink.
The exclusion sent XRP’s price tumbling by more than 12%, with its open interest in the derivatives market also plummeting.
Market analysts suggest that the decision could be linked to Ripple’s ongoing legal battles with the US Securities and Exchange Commission (SEC), which continue to cast uncertainty over the token’s classification.
The move underscores the growing importance of regulatory compliance in determining the legitimacy of digital assets in international markets.
Why did Hong Kong leave XRP out of its approved list?
Hong Kong has been tightening its oversight of the crypto market, implementing a licensing regime that requires platforms to meet strict compliance standards.
The SFC recently granted trading licences to PantherTrade and YAX, allowing them to operate legally.
The regulator has been selective about which cryptocurrencies can be traded on these platforms, prioritising those with established market credibility and clear regulatory classification.
Ripple’s ongoing legal dispute with the SEC may have played a role in XRP’s exclusion.
The US regulator has been engaged in a lengthy battle with Ripple over whether XRP should be classified as a security or a currency.
This legal uncertainty could have prompted Hong Kong authorities to take a conservative approach by keeping XRP off the approved trading list for now.
Hong Kong’s regulatory framework places a strong emphasis on investor protection, anti-money laundering (AML), and counter-terrorism financing (CTF) measures.
The SFC has only approved a handful of exchanges under these conditions, and the list of tradable cryptocurrencies remains limited.
So far, just ten platforms have met the required standards, and the commission has extended its approval deadline to review more applicants.
XRP’s market reacts with heavy losses
The market response to XRP’s exclusion was swift, with the token shedding more than 12% in value.
XRP fell to around $2.45, and its open interest—an indicator of investor activity in the futures market—declined to $3.52 billion, marking a significant drop from its January peak of $7.62 billion.
Technical indicators suggest further downside pressure.
XRP is now trading below key moving averages, including the 10-day exponential moving average (EMA) at $2.48 and the 21-day EMA at $2.54.
If selling momentum continues, traders may see the price retest lower support levels in the near term.
Despite this setback, Ripple’s legal battle with the SEC remains the primary factor shaping XRP’s future.
The token’s long-term performance will likely depend on whether it can gain regulatory clarity and secure approvals in major financial markets.
For now, its absence from Hong Kong’s list of approved cryptocurrencies highlights the growing importance of regulatory compliance in shaping the digital asset landscape.
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