Japan plans to classify XRP tokens as regulated financial products by Q2 2026.

Japan's Financial Services Agency (FSA) plans to formally reclassify Ripple's XRP as a "regulated financial product" by the second quarter of 2026, removing it from the "crypto asset" category under the Payment Services Act and placing it under the stricter regulatory framework of the Financial Instruments and Exchanges Act. This move aims to align XRP's legal status with its widespread institutional adoption in Japan, where it has become a pillar of the country's banking and remittance infrastructure.