Crypto-centered companies like Xapo, which reportedly manages $10 billion worth of Bitcoin for its clients, are planning to run their operations in the British territory of Gibraltar. Xapo’s chief executive, Wences Casares, recently discussed his company’s plans to “expand operations” in the headland with Albert Isola, Gibraltar’s Commerce Minister.
Isola told Bloomberg:
“We had a good session with Xapo about their plans to expand operations in Gibraltar. About 30 firms are going through the regulatory process to be licensed.”
Many consider Gibraltar and Malta to have a crypto-friendly environment. Currently, Xapo is authorized to provide financial services in Gibraltar and it’s reportedly going through the process of acquiring other business licenses.
Xapo, a “cold storage” service provider, is known to have set up a geographically dispersed network, which consists of a number of underground vaults spanning five continents. Notably, the firm has a decommissioned military bunker in Switzerland for storing its clients’ cryptocurrencies.
The company also used to provide crypto debit cards to its customers before they were canceled by Visa over regulatory concerns. Casares himself is notably a bitcoin bull, who’s in the past argued one BTC will be worth $1 million.
Gibraltar Is Turning Into a Crypto Hub
The British territory appears to be leading the charge when it comes to creating regulations for cryptocurrencies. In January 2018, it introduced the Digital Ledger Technology Framework, which aims to help cryptocurrency companies establish their business there. Initial coin offering (ICO) regulations are reportedly being developed, and are set to be introduced in October.
Per Gibraltar’s authorities, social trading and brokerage firm eToro is in the final stages of being registered as a crypto business. It will reportedly be operating in compliance with Gibraltar’s new regulatory framework for blockchain-related companies. As reported, eToro is also expanding its crypto services to US investors.