According to a recent report, cryptocurrency custodian Xapo is gearing up to become a “full-fledged” bank in the British overseas territory of Gibraltar. The region at the southernmost tip of the Iberian Peninsula is also expanding “regulatory guidelines for the exchange of digital assets”, according to a partner at international law firm Isolas LLP.
Recently, cryptocurrency custodian Xapo sent out a wave of emails noting that it would no longer serve US customers in the future. “As a result of a change in our global business strategy, Xapo, Inc. the US market and close all Xapo accounts of US customers. As a result, we will need you to transfer your money to an external bitcoin address, ”the company said.
This email followed it Announcement Xapo made this last spring when it said the company plans to become a digital bank in Gibraltar. “We will relaunch as a digital bank at the end of this year,” the company revealed. On January 20, 2021, Gibraltar’s Finance Minister Albert Isola told Decrypt employee Adriana Hamacher that Xapo is establishing itself as a “full-fledged bank” in Gibraltar.
“Xapo has now established itself in Gibraltar as a full-fledged bank,” Gibraltar’s finance minister said, according to Hamacher’s recent report.
In addition to the statement from Albert Isola, the partner at the international law firm Isolas LLP, Joey Garcia detailed how Gibraltar on Tuesday is extending regulatory guidelines for the exchange of digital assets. Garcia is also a board member of IOV Labs (RSK) groups and the Custodian Xapo.
“The framework is designed to guide those who have the potential to form important foundational 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),” said the announcement. details. Garcia also stressed that Gibraltarians are pioneers when it comes to digital currencies and blockchain innovation.
“Gibraltar has long been a leader in driving innovation and developing regulatory standards for virtual asset service providers and we believe the 10th Core Principle will help us even further in our mission to achieve this,” said Garcia explained. “Especially because the integrity of these markets is such an important point of attention internationally. We have already regulated some of the largest groups in the world in Gibraltar and this should continue to put these groups at the forefront of industry standards, ”said the Isolas partner.
News of Xapo becoming a digital bank in Gibraltar recently follows the Gibraltar Financial Services Commission (GFSC) updated guidelines for distributed ledger technology (DLT) providers. Additionally, news.Bitcoin.com financial columnist Jeffrey Gogo reported about the bitcoin fund of the Canadian company 3iQ listed on the Gibraltar Stock Exchange.
What do you think about Xapo becoming a digital bank in Gibraltar? Let us know what you think about this topic in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Xapo logo
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