Category: Ripple

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Australia Cryptocurrency Law Ripple

NPP Australia Files Lawsuit Against Ripple Labs Over Potential PayID Dispute

Australian industry-wide payment platform NPP, or the New Payments Platform, is currently in the process of lodging a lawsuit against international remittance focused cryptocurrency Ripple (XRP) over a potential trademark dispute. 

The New Payments Platform, launched in February 2018, is a collaborative effort between 13 of Australia’s biggest banks and financial institutions, connecting finance platforms through new infrastructure that allows for faster, more convenient banking.

New lawsuit information filed via the New South Wales Registry in the Federal Court reveals that the NPP filed a lawsuit on August 20 in relation to a trademark dispute — potentially over Ripple’s recent launch of the “PayID” system.

While the NPP’s PayID solution is focused solely on the Australian payments ecosystem, Ripple provides banks, payment providers, corporate entities, digital asset exchanges, and everyday users to send and receive money at far lower rates than traditional banking platforms. 

NPP PayID Solution Launched First

Ripple’s PayID platform focuses on simplifying the process of sending XRP — or any cryptocurrency — in addition to various cryptocurrencies, across multiple networks. The Ripple PayID system has been active since June 18, 2020, but doesn’t predate the New Payments Platform’s PayID system, which was launched in February 2018.

Ripple’s solution is focused on connecting individuals across disparate networks, opening up closed payment systems and providing a simple solution for any business that sends or receives money. While the Ripple PayID solution is arguably broader in scope than the Australian NPP’s PayID platform, the trademark issue presents a strong position for the latter party to argue a trademark dispute.

The first hearing for the NPP Australian lawsuit is scheduled for Wednesday, August 26.

Categories
Institutions Ripple

eToro And Binance Drop XRP From Their Platform

Following the massive backlash that Ripple faces due to the SEC’s lawsuit, two major exchanges —Binance and eToro— are suspending XRP trading from their platform.

As expected, it was only a matter of time until major exchanges started delisting XRP when Coinbase and Grayscale —both members of the Crypto Rating Council— decided to turn away from Ripple.

eToro stated that the platform is suspending XRP trading and deposits on the U.S. The broker settled a deadline of January 24 for users to close all XRP positions. Despite this, earlier suspensions could apply before January 3 if the panorama for Ripple worsens.

For now, the above prohibitions affect only US customers and will not affect any customer’s ability to hold XRP in the eToro Wallet.  All customers, including US customers, may continue to hold XRP in their eToro Wallet, and those customers still holding XRP on the eToro platform after January 24th can transfer their XRP to an eToro Wallet at any time.

Likewise, Binance announced that trading and deposits using XRP are suspended, but withdrawals are allowed until January 13.

A Risky Scenario For Exchanges

The SEC’s lawsuit against Ripple can take several years of legal dispute. The decisions to remove XRP are not only driven by the massive price drop. Exchanges could be in danger of being sued by regulatory bodies alike if the SEC wins and Ripple Labs did sell XRP as a digital asset.

Similarly, a Coinbase user is filing a lawsuit against the exchange for selling XRP as a digital asset instead of a security.

Thomas Sandoval, who resides in St. Louis, is the plaintiff in this case. Sandoval states that Coinbase knew that XRP was a security, unregistered by regulatory bodies, but decided to sell it as a digital asset anyway.

It’s not yet clear how the legal procedure will develop. Sandoval added that Coinbase “scammed” its user base by having “prior information” about XRP being an unlicensed security.

The pretrial for Ripple has been set as well, on February 22 of 2021. The pretrial will be held virtually with a teleconference. Both parties need to submit a joint letter a week later defending their position.