Japan Financial Services Agency (FSA) has announced that it sees Ripple as an ordinary cryptocurrency and not as a security.

This is contrary to the US SEC, which sued Ripple for selling its XRP token, which the former alleges to be a security. On the other hand, the FSA views XRP as a mere digital asset class based on the Payment Services Act definition. Japan’s Payment Services Act describes cryptocurrency as a digital asset or virtual currency.

FSA further said these assets are only used as payment for unseen persons and do not reflect fiat currency properties. Meanwhile, this is the first time the FSA has commented ever since the SEC filed the lawsuit against Ripple.

Nomura Research Institute also filed a report that defined XRP as a crypto asset and not a security. Moreso, Ripple’s long time partner SBI Holdings said that XRP is not a security in Japan.

Months ago, Ripple Executive Chairman Chris Larsen said that Ripple plans to relocate to a more crypto-friendly country.

At the time of writing, XRP price has fallen as low as 35% since the lawsuit. Many believe that this is due to the lawsuit.

Read also: Over 26 Companies Remove XRP Services Amid Ripple Lawsuit