#ScrollCoFounderXAccountHacked Japan Moves to Classify XRP as a Financial Product, Eyeing Q2 2026 Implementation
Japan’s proposed classification of XRP under the Financial Instruments and Exchange Act marks a major step in formalizing digital asset regulation. By clarifying compliance for exchanges, institutions, and retail investors, it reduces legal uncertainty and strengthens the trading environment.
Concurrently, the nation is leveraging the XRP Ledger as the foundation of its emerging tokenized economy.
If Japan classifies XRP as a financial product under the FIEA, it could set a landmark precedent for other cryptocurrencies navigating the country’s strict regulatory landscape.
While most digital assets are currently regulated as crypto assets under the Payment Services Act, this move would impose tighter oversight, including exchange licensing, anti-money laundering rules, and stronger investor protections, potentially opening the door for major firms to officially adopt XRP.
