The Financial Services Agency of Japan (FSA) regards XRP as a cryptocurrency, not as a security. The regulator first designated the token’s legal status in a letter to The Block.
“The FSA regards XRP as a cryptocurrency on the basis of the definitions in Japan’s Payment Services Act,” as quoted by the publication.
Under the law, a digital asset is a “cryptocurrency” or “virtual currency” when used as a means of payment and not expressed in fiat.
Last month, the Nomura Research Institute wrote in a report that XRP is a cryptoasset, not a security. In December, the Japanese financial giant SBI Holdings supported the researchers’ position.
The UK Treasury also does not consider XRP a security.
“Such exchange tokens as Bitcoin, ETH and XRP are not subject to regulation,” statement by HM Treasury.
Earlier, on December 23, the U.S. Securities and Exchange Commission filed a lawsuit against Ripple. According to the agency, the company sold unregistered securities in the form of tokens.
Brad Garlinghouse denied the charges and vowed to defend Ripple in court. Preliminary hearings will take place on February 22 2021.
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