Japan plans to reclassify XRP as a regulated financial asset under the Financial Instruments and Exchange Act by the second quarter of 2026, signaling a clearer framework for digital assets. The move will subject XRP to stricter oversight, including enhanced disclosure requirements, licensing, and anti-money laundering compliance, aligning it with traditional investment products. The decision reflects Japan’s broader strategy to refine digital asset regulation by integrating established financial laws, and it highlights XRP’s significant role in Japan’s banking and tokenized payment systems, supported by the XRP Ledger. While XRP will transition away from its current crypto-asset status, other digital assets will remain under existing payment laws, and the initiative aims to ensure structured oversight and controlled institutional participation in the digital asset market.
Japan plans to reclassify XRP as a regulated financial asset under the Financial Instruments and Exchange Act by the second quarter of 2026, signaling a clearer framework for digital assets. The move will subject XRP to enhanced disclosure requirements, licensing, and anti-money laundering compliance, aligning it with traditional investment products. The decision reflects Japan’s broader strategy to refine digital asset regulation by integrating established financial laws, and it highlights XRP’s significant role in Japan’s banking and tokenized payment systems, supported by the XRP Ledger.
XRP will transition away from its current crypto-asset status, while other digital assets will remain under existing payment laws. The initiative aims to ensure structured oversight and controlled institutional participation in the digital asset market, strengthening investor protections. This regulatory shift could clarify asset categorization and attract institutional participation as Japan formalizes its digital asset framework. It underscores XRP’s pivotal role in Japan’s banking and tokenized payment ecosystems, supported by the XRP Ledger.
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