According to a recently released report, cryptocurrency manager Xapo is preparing to become a “full-fledged” bank in the UK overseas territory of Gibraltar. According to a partner of the international law firm Isolas LLP, the region at the southern tip of the Iberian Peninsula has also expanded the “regulatory guidelines for the exchange of digital assets”.
Just recently, cryptocurrency manager Xapo sent out a wave of emails stating that it will no longer serve US customers in the future. “Due to a change in our global business strategy, Xapo, Inc. is leaving the US market and will close all US customer Xapo accounts. Therefore, you have to transfer your money to an external Bitcoin address, ”the company explained.
This email followed that announcement Xapo announced last spring that it plans to become a digital bank in Gibraltar. “We will restart as a digital bank at the end of this year,” the company announced. On January 20, 2021, the Finance Minister of Gibraltar, Albert Isola, informed the Decrypt employee Adriana Hamacher that Xapo was establishing itself as a “full-fledged bank” in Gibraltar.
“Xapo has now established itself as a full-fledged bank in Gibraltar,” said the Gibraltar Finance Minister, according to Hamacher’s latest report report.
In addition to the testimony of Albert Isola, partner in the international law firm Isolas LLP, Joey Garcia detailed on Tuesday as Gibraltar expands regulatory guidelines for the exchange of digital assets. Garcia is also a board member of IOV Labs (RSK) groups and the custodian bank Xapo.
“The framework is intended to guide those who have the potential to form important basic 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 said more details. Garcia also stressed that Gibraltarians are pioneers when it comes to digital currency and blockchain innovations.
“Gibraltar has a long history of leading the way in promoting innovation and developing regulatory standards for virtual asset service providers. We are confident that the 10th Core Principle will continue to support us in our mission to achieve this, ”said Garcia explained. “Especially since the integrity of these markets is such a central point internationally. We have already regulated some of the largest groups in the world in Gibraltar and this should keep these groups at the forefront of standard setting in the industry, ”said the Isolas partner.
News of Xapo becoming a digital bank in Gibraltar recently follows the Gibraltar Financial Services Commission (GFSC) updated guides for DLT providers (Distributed Ledger Technology). Also, news.Bitcoin.com finance columnist Jeffrey Gogo reported via the Bitcoin fund of the Canadian company 3iQ, which 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 on this matter in the comments section below.
Tags in this story
10. Basic Principle, Adriana Hamacher, British Overseas Territory, Xapo Custodian, Digital Bank, Gibraltar Digital Bank, Full-fledged Bank, Gibraltar, IOSCO, Joey Garcia, Xapo, Xapo Gibraltar
Photo credit: Shutterstock, Pixabay, Wiki Commons, Xapo logo
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or an invitation to make an offer to buy or sell, or a recommendation or approval of products, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use or reliance on the content, goods or services referred to in this article.
