SBI Holdings Says XRP Is Not ‘Security’ in Japan; Will continue to Actively Support Ripple
While Ripple's partner says “there is almost no adverse effect” of XRP’s price crashing on their business, the list of US-based crypto service providers severing their ties with XRP continues to get bigger.
On Monday, Japanese giant SBI Holdings said XRP is a cryptocurrency asset under the Japanese law as it addressed the lawsuit filed by the US Securities and Exchange Commission (SEC) against Ripple and its two top executives.
SBI is Ripple’s partner and one of its leading investors. It was also part of the firm’s $200 million Series C funding round.
“XRP is a “cryptocurrency asset” under the Funds Settlement Law, and it is not applicable to “securities” under the Financial Instruments and Exchange Act,” reads the statement.
The company doesn’t think there will be any problems because the crypto asset will continue to trade as cryptocurrency rather than securities in Japan. Additionally, the remittance solution using Ripple’s distributed ledger technology (DLT) works as intended whether or not XRP is used. The company assured,
“The Group will continue to actively support the activities of Ripple to expand its use in Japan and overseas.”
SBI further said that although it does not invest directly in XRP, “There is almost no adverse effect on our consolidated business results due to the fall in the price of XRP.”
XRP price has lost considerable value ever since the news of the SEC lawsuit came out. Trading at 0.295, XRP has lost its 3rd spot in the market and fallen to 4th position.
“XRP will get delisted from Coinbase (ahead of its IPO) and will fall out of the Top 10,” predicts a partner of crypto fund The Spartan Group.
The List Gets Bigger
Interestingly, one of the largest market-making firms in the crypto market B2C2, which SBI Holdings acquired this month, stated in its memo last week that the firm “may take further actions regarding trading in XRP products” and will be notifying its clients of future developments. B2C2 USA, the American unit of the firm was launched in 2019.
The list of crypto service providers cutting down their ties with XRP is getting bigger and bigger.
As we have been reporting through this week, Bitstamp, OSL, Bitwise Asset Management, Beaxy, and CloseTowers have already suspended XRP trading and deposits temporarily for US customers or liquidated their positions.
Mike Novogratz Galaxy Digital has already stopped making markets in XRP the same as high-frequency trader Jump Trading.
Another small exchange STEX has disabled XRP trading and deposits for US-based users.
Crypto lender Nexo Finance has also removed the “payback” button on XRP loans. The company didn't announce it publicly but tweeted “Nexo is one of the few crypto companies that has complied with regulation which is why we registered our token sale with the SEC in 2018. The space grows with institutional adoption & the next big companies will be the compliant ones,” in response to XRP being sued by SEC for allegedly selling unregistered securities.