As XRP continues to plummet in value due to Ripple’s turmoil with the U.S. Securities and Exchange Commission (SEC), the token seems to find some support in Japan, as crypto exchanges in the nation have refused to delist it.
Nomura and Key Ripple Partner Keep Supporting XRP, Reject US SEC Claims
Per a report published by Sadakazu Osaki, an analyst from the economic research firm Nomura Research Institute, Ripple’s token is considered in the land of the rising sun as a crypto asset, according to the Funds Settlement Act, as securities are registered with the Financial Services Agency (FSA) for “offering or sale.”
That’s why XRP cannot be categorized under “securities” and in consequence, SEC’s lawsuit against the blockchain firm won’t have an impact on the status of the token in Japan whatsoever, said the researcher.
Osaki also highlighted the popularity that XRP has in Japan, as the token “is widely traded in cryptocurrency exchanges in Japan”:
It can be said that the interpretation that it does not fall under ‘securities’ under the Financial Instruments and Exchange Act, which requires the submission of a document, has been established. This point will not be affected by the proceedings between the SEC and Ripple.
Moreover, SBI Holdings, considered one of the nation’s biggest financial firms, supports Osaki’s views on XRP, stating that exchanges will keep trading the token accordingly with the local laws established by the correspondent watchdogs.
Ripple’s CEO Denies XRP Is a Security
In the lawsuit, the U.S. SEC claimed that Ripple Labs Inc. and two of its executives allegedly raised over $1.3 billion “through an unregistered, ongoing digital asset securities offering.”
Such claims have been denied by Ripple’s CEO, Brad Garlinghouse, who said that SEC’s allegations are “fundamentally wrong as a matter of law and fact.”
Ripple and the U.S. SEC’s legal battle has led to a series of announcements from major cryptocurrency exchanges to delist or halt XRP trading as a temporary measure due to the turmoil that triggered high volatility and led to legal uncertainty in regards to Ripple’s token.
What are your thoughts on the Japanese crypto industry stance in regard to Ripple’s turmoil with the US SEC? Let us know in the comments section below.
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