Japan's Financial Services Agency (FSA) considers XRP to be a cryptocurrency and not a security. Regulatorfirst outlined the legal status of the token in a letter to The Block.
"The FSA views XRP as a cryptocurrency based on the definitions of the Japan Payment Services Act," the FSA quoted the publication as saying.
Under the law, a digital asset is a "cryptocurrency" or "virtual currency" when it is used as a means of payment and is not denominated in fiat.
Last month Research InstituteNomura wrote in the report that XRP is a crypto asset and not a security. In December, Japanese financial giant SBI Holdings supported the researchers' position.
The UK Treasury also does not consider XRP to be a security.
"Exchange-traded tokens such as Bitcoin, ETH and XRP are not subject to regulation," the UK agency said in a January statement.
On December 23, the US Securities and Exchange Commission filed a lawsuit against Ripple. According to the department, the company sold unregistered securities in the form of tokens.
The CEO of the Californian blockchain company, Brad Garlinghouse, denied the accusations and promised to defend Ripple in court. The preliminary hearing will be held on February 22, 2021.
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