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