SBI Holdings, one of Ripple’s largest partners, issued a new announcement on December 28. Referring to the XRP lawsuit filed by the SEC, SBI Holdings announced that XRP is not considered a securities in Japan and is evaluated in the cryptocurrency category.
The SEC’s XRP lawsuit against Ripple has split the cryptocurrency world in two. Some cryptocurrency exchanges have decided to halt XRP transactions in case Ripple is fined. Ripple’s partner in Japan, SBI Holdings, has backed its partner on the other side of the Pacific.
Cryptocurrency counts in Japan
The SEC, which rates XRP as securities, accused ripple of selling $ 1.3 billion of unregistered securities. The response from Ripple, especially CEO Brad Garlinghouse, was that XRP does not have Securities and other countries do not define XRP as securities.
SBI Holdings backed up this claim in its December 28 filing. Citing a study by the Nomura Research Institute, SBI Holdings announced that XRP is not subject to the Financial Instruments and Exchange Act. It was stated that XRP, which is not considered as a securities in this form, is defined as a cryptocurrency asset. The company’s message of support for Ripple is as follows::
“The lawsuit between the SEC and Ripple will not change the fact that XRP is not securities in Japan. XRP will continue to be bought and sold as a cryptocurrency asset on Japanese cryptocurrency exchanges, not as securities. We don’t think there will be any problems.”
Investing in Ripple, not XRP
In its announcement, SBI Holdings stressed that the company was investing in Ripple, not XRP. With SBI Holdings ‘ XRP, only SBI VC Trade Co. through it, it was conveyed that it interacted in a restricted way. Regarding the restricted use of XRP, SBI Holdings added::
“The distributed ledger technology used by Ripple reduces the cost of international money transfers by a large amount, even if XRP is not used. Major financial institutions in Europe and Asia are considering using the technology. That’s why Ripple is considering the idea of moving its headquarters from the US to another country.”