XRP Watch

Currently, most digital assets in Japan are still regulated as crypto assets under the Payment Services Act. Reclassifying XRP under the FIEA would bring tighter oversight, including exchange licensing requirements, the application of anti-money laundering rules, and stronger investor protection. This is seen as potentially opening the door for large corporations to officially adopt XRP. The Japanese government itself is in the process of refining its crypto policies to balance innovation with consumer protection, targeting implementation in the second quarter of 2026. This approach gives market participants time to adjust, amid growing adoption of the XRP Ledger by major Japanese banks, reflecting increasingly strong institutional support. Recognition of XRP as a financial product could also serve as a global reference point for crypto regulation. At a time when the United States and the European Union are still debating the legal status of XRP, Japan’s move could provide guidance for other countries in balancing innovation, risk management and investor protection. https://www.idnfinancials.com/jp/news/60753/japan-ready-to-recognise-xrp-as-financial-asset-under-fiea-regulation#:~:text=Reclassifying%20XRP%20under%20the%20FIEA,to%20attract%20major%20institutional%20interest.