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Ripple’s xRapid can’t be used by Coinone’s Cross due to government guidelines; XRP community suggests alternative



Ripple's xRapid can't be used by Coinone's Cross due to government guidelines; XRP community suggests alternative
Source: Unsplash

Coinone exchange’s Cross, officially confirmed that it is not using xRapid due to regulatory obligations that have to be met for using cryptocurrency-based [XRP] services.

Coinone is a South Korea-based cryptocurrency exchange which launched ‘Cross’ – a remittance app utilizing Ripple’s services to facilitate speedy cross-border payments on December 10, 2018.

When asked if Cross was open to using Ripple’s xRapid, Cross replied to a Twitter user named ‘XRP Veteran:

“Hello overseas remittance is cross 🙂 Our service is not used in the remittance business according to the Government guidelines of the Republic of Korea. The Xrapid solution is not available at this time because it is based on a cryptocurrency XRP transfer, unlike the Xcurrent solutions used by cross.”

To a subsequent question, Cross replied that if the cryptocurrency regulation was removed then they would be open about looking into xRapid solutions.

Thailand’s Siam Commercial Bank became the first financial industry on RippleNet to pioneer a key feature called, ‘multi-hop’. The multi-hop feature eliminates the need to have a bilateral relationship between financial institutions to settle payments.

Since XRP is explicitly legalized and endorsed as per Ripple’s CEO Brad Garlinghouse, Coinone could still use the multi-hop feature and connect to its already existing partner, SCB, without actually using XRP.

Dr. T, a prominent individual in the XRP community also suggested the same in his tweet. He said:

“I guess since they explicitly said they can use xCurrent, David’s idea of xRapid transaction happening in the outer flow of a multihop payment seems like only alternatively. They have SCB connection, and that makes things possible as Thailand has legalized XRP for banking use too”

As per Dr. T, David Schwartz, the CTO of Ripple explained on Discord about the multi-hop feature for payment settlements without having to bear the burden the regulations.

Although Coinone has officially and explicitly announced that they can’t use xRapid due to regulatory concerns, the XRP community explains another way to use the xRapid solution.

XRP Research Centre, a Twitter user replied to Dr. T saying:

“Yeah that’s genius. Thanks for helping me to understand this back then. I think there will be a couple of key jurisdictions in the future that will be the chosen hubs for xRapid liquidity.
My take: -Thailand.-Japan. -Malaysia. -Luxembourg. -Malta. -Brazil. -Hope USA.”

Dr. T replied:

“Thank you for your analysis. Which one of these are you thinking is critical?
I also think Korea will legalize digital asset use in the future. The countries that concern me however are China and India.”

CryptpHeimdall, another Twitter user commented:

“Or don’t put your hopes up too much. xCurrent serves them just fine in this case.”

To this, Twitter user Zerp_Hound replied:

“xRapid is still the end game. The only thing slowing it down is regulatory clarity for crypto and global liquidity for #XRP.
Both of these take time but we are moving closer to achieving both of those everyday.”

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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.