For Japanese regulator, Ripple’s XRP is not a financial security
Ripple (XRP) may have found a welcome land more open to cryptocurrencies than the United States. A large Japanese regulator has indeed confirmed that it does not consider XRP as a financial security.
Is XRP a financial security?
As a reminder, the Securities and Exchange Commission (SEC) complaint against Ripple relates to the status of XRP. The US regulator considers XRP to be a financial security , more specifically a security, where Ripple considers it to be a digital currency.
According to information from our colleagues at The Block , the Japanese Financial Services Agency (FSA), however, is more on the side of Ripple in this debate, explaining:
“The FSA sees XRP as a cryptocurrency , taking into account the definition of the Payment Services Act.“
This is also the interpretation of the Department of Finance of the United Kingdom, which specified last week:
“Tokens which are used primarily as a medium of exchange – this includes the most well-known crypto-assets, like Bitcoin, Ether and XRP . “
What this means for the future of Ripple
Where this is notable is that it shows that the aggressiveness of the US regulator has not spread elsewhere. This therefore means that Ripple and its asset, XRP, can be exported in search of a more flexible regulatory framework . In any case, this is what Brad Garlinghouse had already suggested in recent months, probably feeling the tide. Japan and the United Kingdom were rightly mentioned at the end of last year.
The company had also opened a regional HQ in Dubai . Ripple’s posture has been clear for some time anyway. Chris Larsen, the co-founder of the project explained a few months ago:
“ I don’t think the SEC’s posture could be any worse for the [blockchain] industry today . They’re just trying to crush [us] and push us aside . “
The upcoming trial promises to be complicated for Ripple. Whether the company will leave the city of San Francisco, where it has been established for a long time, remains to be seen.