XRP More Popular in Japan Than U.S. – Hong Kong Study Explains Why

It is the second most popular cryptocurrency in the Asian economic giant.

XRP is More Popular in Japan Than the U.S.

Hong Kong study on why #XRP is the second most popular crypto in Japan.

With nearly 1.36 billion units traded in February 2022, XRP was the cryptocurrency with the highest spot trading volume in Japan.#SBIhttps://t.co/qbFxH6zF8r pic.twitter.com/JErrEFQSrX

— 🌸Crypto Eri 220k+ Followers (Beware of Imposters) (@sentosumosaba) February 19, 2023

XRP maintains a solid supporter base in Japan and is widely viewed as the second most popular cryptocurrency in the country per a BITMAX survey from June 2020, which showed it was comparable with Bitcoin in popularity, with Ethereum coming a distant third.

A recent paper from the City of Hong Kong University, which has made the rounds on Twitter, asserting that the asset is more popular in Japan than in the United States, attempts to explain why the people of Japan favor the token. The study attributes XRP’s success in Japan to Ripple’s partnership with SBI Holdings. It is worth noting that both firms run SBI Ripple Asia, a joint venture together, with SBI Holding’s chief Yoshitaka Kitao previously serving on Ripple’s board.

Per the university paper, SBI is Japan’s most reputable venture capital firm. As explained in a World Coin Stats report from 2021, referenced by the paper, the Japanese tend to hold institutions in higher esteem, unlike the West. Consequently, SBI’s Ripple partnership gives XRP unparalleled credibility in the country.

Notably, both firms maintain close ties to date.

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It is worth noting that Ripple’s extended legal battle with the U.S. Securities and Exchange Commission has not helped its popularity in the U.S. Recall that the markets regulator filed a complaint against the blockchain payments company in December 2020, asserting that XRP is an unregistered security. After over two years, the case awaits a court ruling, as both parties have submitted all required briefs.

In addition, unlike Japan which has transparent crypto and anti-money laundering crypto regulations, there are still no clear guidelines for the industry in the U.S. The SEC chair Gary Gensler, maintaining that traditional security laws are sufficient, has continued a campaign of regulation by enforcement, shrouding the market in uncertainty, with most recent actions raising questions about the viability of staking services and dollar-pegged stablecoins.

Meanwhile, due to its efficient regulatory climate, Japan has fared better than the U.S. in the wake of the FTX collapse. As reported, assets belonging to Japanese customers are safe and will be returned via a sister crypto exchange.

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