Japan’s regulatory body, FSA, has pointed out that under Japanese law XRP is not considered a security, unlike in the United States,
Japan’s top securities watchdog, the FSA, claims XRP is not a security given that the token does not meet the definition of a security under Japanese law. XRP finally wins one?
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XRP is not a security!
It is worth remembering that the US SEC sued Ripple, the crypto firm behind XRP. The regulator noted that the company “engaged in this illegal securities offering from 2013 to the present” in which it “was able to raise at least $1.38 billion by selling XRP” without being registered.
Accordingly, the US SEC notes that XRP is a security and therefore must be registered under that category, something Ripple did not do.
But unlike US regulators, Japan ruled that XRP does not meet the definition of a security under Japanese law.
“The FSA considers XRP as a cryptocurrency based on the definitions of the Payment Services Law,” the Japanese regulator told The Block.
However, the fact that Japan considers XRP to be a cryptocurrency and not a security has nothing to do with the allegation by the SEC against Ripple. Likewise, the US classification of XRP is unlikely to affect how Japan views the crypto.
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What will happen to Ripple?
So, although many would like it to be different, Japan’s categorisation of XRP does not eliminate Ripple’s problems. Clearly in a different scenario where Japan also considered crypto as a security, the problem would be much greater.
Thus, Ripple’s future is quite uncertain. As we have previously reported, many crypto exchanges have stopped trading XRP.
However, over the years, Ripple has managed to build a loyal XRP user base. Still, demand has managed to raise concerns.
According to CoinDesk, Okurisan, a Japanese XRP investor, said that “many people are sad about the SEC problem these days… I am very worried”. But, nevertheless, the Japanese investor believes that the crypto will be able to recover.
Japan has become a key country for Ripple and XRP, so much so that it is among the countries Ripple has considered moving to.
Translated with www.DeepL.com/Translator (free version)