Japanese financial conglomerates have deep ties with the American blockchain company. While the US securities regulator has dragged Ripple to court over allegations of unregistered securities selling, its Japanese counterpart has recently taken an opposite view.
According to a report by The Block, the Financial Services Agency of Japan (FSA) confirmed that it continues to view XRP as a cryptocurrency, not a security.
“The FSA sees XRP as a cryptocurrency based on the definitions of the Payment Services Act,” the top securities market regulator told the publication. The FSA declined to comment on other officials’ response.
Ripple’s troubles, once hailed as a disruptor of the existing cross-border payment system, last month the U.S. Securities and Exchange Commission (SEC) sued the company to raise $ 1.3 billion by selling XRP, which allegedly entered the securities category. started with the opening.
Although Ripple has faced criticism before, the regulator’s case turned into an existential crisis for him. The cryptocurrency market reacted to this, and XRP prices dropped around 35 percent from pre-litigation levels.
Cryptocurrency exchanges, primarily operating in the United States, have suspended XRP trading due to concerns over regulatory responses to unregistered securities listing. Many other crypto companies have also quit offering services with XRP. Grayscale recently ended its XRP savings.
Japan next to Ripple
However, Japan has always supported XRP, even after the US retaliation. Earlier, multiple Japanese cryptocurrency exchanges declined to remove XRP from the list, saying it was not a security.
The East Asian country is one of the most liberal countries in crypto and was among the first to recognize “virtual currencies” as a form of payment. Japan’s support for XRP is not surprising, given the ties of many major financial services companies with the American company.
The UK finance minister also clarified the country’s stance against the currently controversial XRP, saying it was not a security, and labeled it a “exchange token” similar to Bitcoin and Ethereum.