With XRP continuing to decline in value due to Ripple’s turmoil with the US Securities and Exchange Commission, the token appears to be gaining support in Japan as crypto exchanges across the nation have refused to delist it.
Nomura and Key Ripple Partners continue to support XRP and reject US SEC claims
According to a report by Sadakazu Osaki, an analyst with economic research firm Nomura Research Institute, Ripple’s token is considered a crypto asset in the Land of the Rising Sun under the Funds Settlement Act because securities are registered with the Financial Services Agency (FSA) for “offer or” Sale”.
For this reason, XRP cannot be classified as “securities”. As a result, the SEC’s lawsuit against the blockchain company has no impact on the token’s status in Japan, the researcher said.
Osaki also highlighted the popularity that XRP has in Japan as the token is “widely used on cryptocurrency exchanges in Japan”:
It can be said that the interpretation that it does not fall under “securities” under the Financial Instruments and Stock Exchange Act, which requires the submission of a document, has been established. This point is not affected by the proceedings between the SEC and Ripple.
In addition, SBI Holdings, which is widely recognized as one of the largest financial firms in the country, supports Osaki’s views on XRP and states that the exchanges will continue to trade the tokens in accordance with local laws set by the relevant guard dogs.
Ripple’s CEO denies that XRP is a security
In the lawsuit, the US Securities and Exchange Commission alleged that Ripple Labs Inc. and two of its executives allegedly raised over $ 1.3 billion “through an unregistered, ongoing offering of securities for digital assets.”
Such allegations have been denied by Brad Garlinghouse, CEO of Ripple, who said the SEC’s allegations were “fundamentally wrong on legal and factual grounds.”
Ripple and the US SEC litigation have led to a number of announcements from major cryptocurrency exchanges to delist or stop XRP trading as a temporary measure due to the turmoil that created high volatility and created legal uncertainty regarding Ripple’s tokens.
What do you think of the Japanese crypto industry’s stance on Ripple’s turmoil with the US SEC? Let us know in the comments below.
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