Ripple Labs token XRP is having an existential crisis in the United States after the Securities and Exchange Commission filed a lawsuit against the token. While XRP is facing troubles in the US, the third-largest cryptocurrency is loved in Japan.
Japan is potentially routing for XRP and considers it a cryptocurrency and not a security as adjudicated in the SEC lawsuit.
XRP Not a Security In Japan
As XRP is caught within the US lawsuit and controversies regarding its status in the country, many exchanges and wallets have suspended the tokens’ activity on their platform. Coinbase, KuCoin, Kraken, and several exchanges announced that they would not support the trading and holding of XRP tokens on their systems. Grayscale, a leading asset management firm, also dissolved its Grayscale XRP fund. An investment tool that lets investors get XRP exposure without holding it.
Japan’s stance on the crypto token is unimpacted by the SEC lawsuit. Considering the immense popularity of the XRP token, the US lawsuit has been condemned by a lot of people who claim that this is against the interest of investors. The lawsuit has also been criticized for attacking virtual currencies and the overall growth of the crypto industry.
While XRP status as a currency is in the doldrums in the US, Japan seems to have a different affinity for the crypto token. Japan treats XRP as cryptocurrency, something the Ripple community has claimed ever since the lawsuit has been filed. SEC regulators feel that XRP is a security and accused Ripple Inc and its two substantial executives of selling unregistered securities in the country.
SBI Holdings had openly supported XRP stating that XRP is a cryptocurrency according to Japanese laws, and thus it is not a security in the country. Also, SBI Holdings CEO Yoshikata Kitao said that Japan’s Financial Security Authority had testified that XRP is not a security.
Ripple CEO Brad Garlinghouse had hinted that they are considering moving Ripple out of the US due to a lack of clarity relating to cryptocurrencies. The CEO said that it is beneficial to move to a county that treats XRP as currency. Japan was one of the possible choices for the move as the country classifies XRP as an asset.
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