According to a recent report, cryptocurrency custodian Xapo is preparing to become a “full-fledged” bank in the British Overseas Territory in Gibraltar. The region at the southern tip of the Iberian Peninsula has also been extending “regulatory guidelines for digital asset exchange,” according to a partner at multinational law firm Isolas LLP.
The cryptocurrency keeper Xapo recently sent out a wave of emails that indicated it would not serve U.S. customers going forward. “Due to a change in our global business strategy, Xapo, Inc. leaves the US market and will close all Xapo accounts of US customers. As a result, you’ll need to transfer your money to an external bitcoin address, ”the company detailed.
This email followed the announcement Xapo did last spring when it said the company plans to become a digital bank in Gibraltar. “We will be relaunching as a digital bank late this year,” the company revealed. On January 20, 2021, Gibraltar’s Finance Minister Albert Isola told Decrypt contributor Adriana Hamacher that Xapo was establishing themselves as a “full bank” in Gibraltar.
“Xapo has now established itself in Gibraltar as a full bank,” said Gibraltar’s Finance Minister, according to Hamacher’s recent report.
In addition to the statement made by Albert Isola, partner at multinational law firm Isolas LLP, Joey Garcia detailed on Tuesday how Gibraltar extends regulatory guidelines for digital asset exchange. Garcia is also a board member of IOV Labs (RSK) groups and the Xapo keeper.
“The framework aims to guide those who have the potential to form important fundamental concepts for the work of other international organizations, such as the Financial Action Task Force, the European Commission and the International Organization of Securities Commissions (IOSCO),” the announcement further. details. Garcia also emphasized that Gibraltarians are leading innovators of digital currency and blockchain innovation.
“Gibraltar has long been a leader in fostering innovation and in developing the regulatory standards of virtual asset service providers and we are confident that the 10th Core Principle will assist us even further in our mission to achieve this,” Garcia he explained. “Especially as the integrity of these markets is such a key focus internationally. We already have some of the largest regulated groups in the world in Gibraltar and this should continue to put those groups at the forefront of setting standards in the industry, ”said partner Isolas.
News of Xapo becoming a digital bank in Gibraltar follows the recent Gibraltar Financial Services Commission (GFSC) updated guidance notes for distributed ledger (DLT) technology providers. In addition, news.Bitcoin.com financial columnist Jeffrey Gogo reported on Canadian company 3iQ’s bitcoin fund is listed on the Gibraltar Stock Exchange.
What do you think of Xapo becoming a digital bank in Gibraltar? Let us know what you think of this topic in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Xapo logo
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