Tag: regulation

  • Ripple’s RLUSD Stablecoin Gains Japan Approval, First Foreign Stablecoin Under New Regulations

    Ripple’s RLUSD Stablecoin Gains Japan Approval, First Foreign Stablecoin Under New Regulations

    Ripple’s dollar-backed stablecoin RLUSD has secured approval from Japan’s Financial Services Agency (JFSA), marking the first time a foreign-issued stablecoin has entered the Japanese market under the country’s new regulatory framework. SBI VC Trade, a licensed Electronic Payment Instruments Exchange Service Provider, has begun distributing RLUSD through its VCTRADE platform to both retail and institutional users.

    Japan Opens New Path for Foreign Stablecoins

    Japan has historically maintained strict rules for foreign stablecoins. RLUSD became the first stablecoin to enter through the newly established Electronic Payment Instrument (EPI) classification under the Payment Services Act (PSA). The approval process focused on regulatory alignment rather than direct acceptance. Ripple had to demonstrate that RLUSD operates under rules in its home jurisdiction that match Japan’s standards for reserve backing and user protection.

    This achievement gives RLUSD an early position in a market that foreign stablecoin issuers have found difficult to access. It also provides an initial test case for Japan’s new regulatory structure, and its performance may shape expectations for future entrants.

    Ripple and SBI Build on a Decade of Cooperation

    Ripple leveraged its long-standing partnership with SBI Group, which dates back to 2016, to establish the launch. Ripple and SBI announced a memorandum of understanding in August 2025, and nearly ten months later, RLUSD became available to users in Japan. The timeline reflected the compliance work required to satisfy regulatory obligations.

    Jack McDonald, Ripple’s Senior Vice President of Stablecoins, stated that RLUSD will support payments, tokenization, and collateral management while connecting Japanese users to global liquidity. For the initial phase, RLUSD in Japan operates on the Ethereum network rather than the XRP Ledger.

    RLUSD Targets Payments and Institutional Use Cases

    Ripple and SBI have positioned RLUSD as infrastructure for financial services rather than a speculative asset. Business-focused applications include programmable trade settlement, collateral management for settlement and margin activities, and supply chain finance to enable faster, more transparent payments across trade networks.

    Tomohiko Kondo, Chief Executive Officer of SBI VC Trade, described the launch as a major milestone in the companies’ ongoing collaboration and digital finance initiatives.

    Since its initial launch, RLUSD has reached roughly $1.7 billion in market capitalization, with a growth pattern marked by steady increases rather than sharp speculative surges. The Japan rollout now places RLUSD inside one of the most tightly regulated digital asset markets, where its performance will help shape expectations for future foreign stablecoin entrants.

  • Brazil Reaffirms Ban on Cryptocurrency Donations for Presidential Campaigns

    Brazil Reaffirms Ban on Cryptocurrency Donations for Presidential Campaigns

    Brazil’s Public Prosecutor’s Office has reaffirmed its ban on cryptocurrency donations to political campaigns ahead of the country’s next presidential election. The announcement reinforces existing campaign finance rules and highlights ongoing concerns about donor identification and funding transparency.

    Authorities stated that candidates and political parties must continue using traditional banking channels and the Pix payment system for campaign contributions. The office emphasized that electoral authorities must identify every donor and verify the origin of each contribution, noting that cryptocurrency transactions often fail to meet those requirements because blockchain wallet addresses do not always reveal the identities behind them.

    Prosecutors confirmed that campaign financing must remain fully transparent throughout the election period, and authorities will closely monitor compliance with campaign finance regulations. The latest announcement does not introduce new legislation but instead confirms an existing prohibition outlined in Brazil’s Superior Electoral Court Resolution No. 23,607, issued in December 2019. This regulation bars political parties and candidates from accepting campaign contributions through virtual currencies.

    Election officials require every donation to include the donor’s taxpayer identification number, allowing oversight agencies to verify both the source and legality of campaign funds. Officials explained that while blockchain transactions are publicly recorded, wallet addresses alone do not always identify the individuals behind them, creating challenges for enforcing campaign finance laws designed to prevent illicit funding and protect public accountability.

    Candidates who fail to properly disclose campaign funding sources may face financial penalties and may need to return improperly received funds to the public treasury. However, Brazilian law still allows digital crowdfunding for political campaigns under specific conditions. Online fundraising platforms may collect contributions if every donor is properly identified and authorities receive reports on every contribution.

    Brazil introduced digital crowdfunding through electoral reforms in 2017, and campaign fundraising through approved platforms may begin on May 15 during each election year. Authorities clarified that the difference depends on transparency rather than technology itself—as long as officials can identify donors and independently verify contributions, digital fundraising remains permissible.

    The restriction applies only to election financing and does not affect cryptocurrency ownership, trading, or broader digital asset activity across Brazil. Brazil remains one of Latin America’s most active cryptocurrency markets, with retail investors, financial institutions, and fintech companies continuing to expand their participation. The country has also introduced regulatory frameworks for virtual asset service providers while exploring broader blockchain applications within financial services.

    Analysts view the campaign finance restriction as a targeted transparency measure rather than a broader shift in Brazil’s digital asset policy. Brazil’s approach reflects a wider international debate over cryptocurrency use in political finance, with supporters pointing to blockchain’s permanent transaction records alongside stronger identity verification systems, while critics argue that pseudonymous wallets continue to create challenges for full donor disclosure and campaign transparency.