XRP Is a Crypto Asset in Japan, Not a Security, Ripple Partner SBI Claims

The SBI Holdings statement refers to a research article by Sadakazu Osaki of the Nomura Research Institute indicating that under Japanese law XRP is a "cryptocurrency asset" and not a security.

Dec 28, 2020 at 2:53 p.m. UTC
Updated Sep 14, 2021 at 10:48 a.m. UTC

Not everyone is turning their backs on XRP, the embattled asset associated with San Francisco-based Ripple Labs.

  • Japan-based financial services company SBI Holdings released a statement Monday saying under Japanese law XRP is a "cryptocurrency asset."
  • The statement arrives after the U.S. Securities and Exchange Commission last week sued Ripple Labs claiming it made a $1.3 billion profit selling XRP to retail investors while failing to register the cryptocurrency as a security in the U.S.
  • SBI referenced a research article by Sadakazu Osaki of the Nomura Research Institute indicating under Japanese law XRP is a "cryptocurrency asset" and it is not a security in Japan.
  • CoinDesk reported in October Ripple intended to invest in SBI's MoneyTap blockchain-based payments subsidiary, which planned to used the RippleNet technology to lower Japanese transfer costs.
  • Many cryptocurrency companies are backing away from XRP around the world, including Bitwise in the United States, Bitstamp in Europe and Hong Kong trading platform OSL.
  • "SBI is putting lipstick on a pig to try and minimize the damage to its reputation in Japan from the Ripple lawsuit," said Joel Edgerton, chief operating officer of BitFlyer USA, a cryptocurrency exchange that also has a strong presence in Japan. "SBI is an aggressive player in the Japanese financial industry and it is working to buy the pieces required to make it a leader in Japanese crypto," Edgerton added. "However, it has many other regulated businesses that will not want any negative reputation impact."
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Milady NFT Prices Tumble After Creator Doxxes Self as Person Behind Controversial 'Miya'

The collection amassed huge popularity in crypto circles but its creator has now acknowledged being the person behind a pseudonymous account allegedly linked to an online cult.

The collection amassed huge popularity in crypto circles but its creator has now acknowledged being the person behind a pseudonymous account allegedly linked to an online cult.

CoinDesk - Unknown
2
CoinDesk - Unknown
How to Transfer NFTs Between Wallets

As an NFT collector or investor, you'll want to learn how to transfer your collectibles in and out of crypto wallets.

As an NFT collector or investor, you'll want to learn how to transfer your collectibles in and out of crypto wallets.

CoinDesk - Unknown
3
CoinDesk - Unknown
South Korean Authorities Look to More Closely Scrutinize Exchanges Following Terra Meltdown: Report

Around 280,000 South Koreans are believed to have been victims of the abrupt plunge in UST and LUNA.

Around 280,000 South Koreans are believed to have been victims of the abrupt plunge in UST and LUNA.

CoinDesk - Unknown
4
CoinDesk - Unknown
First Mover Americas: TRON Outperforms BTC and Crypto Takes a Lead Role at Davos

The latest moves in crypto markets in context for May 24, 2022.

The latest moves in crypto markets in context for May 24, 2022.

CoinDesk - Unknown