The US Securities and Exchanges Commission (SEC) filed a lawsuit against Ripple last week. This had totally damaged the portfolio of XRP holders by making the coin value drop by nearly 50%. Though various cryptocurrency exchanges around the world have delisted XRP, Japanese cryptocurrency exchanges refused to do so.
The US SEC has filed a lawsuit against Ripple that it is not a crypto asset but security. But the Funds settlement Act in Japan states that XRP falls under the category of crypto asset. So, even though XRP is delisted by various exchanges, this will not affect Ripple’s stand in the Asian country, by Sadakazu Osaki, a researcher at Japan’s biggest economic research firm, Nomura Research Institute.
This explanation by Osaki is endorsed by various institutes in Japan, including SBI Holdings, one of the largest financial firms in Japan, which stated that digital exchanges in the country will continue trading XRP under local regulations.
Jay Clayton, former SEC chairman made it clear that both Bitcoin and Ethereum do not fall under security, since they are completely decentralized. But he was not very sure about XRP, as it always portrayed a centralized nature. But now, SEC clearly raised a lawsuit stating XRP as a security. This triggered a $50 billion sell-off in a single day. The cryptocurrency market dropped down to $610 billion from $660 billion on the day of lawsuit filing. But still, Japan’s stance on XRP is very different from that of the US, clearly mentioning it as an asset.