Xapo Among 30 Cryptocrrency Firms Expanding to Crypto-Friendly Gibraltar

  • Gibraltar has progressive fintech regulations and about 30 cryptocurrency companies are “going through the regulatory process to be licensed.”
  • Crypto cold storage firm Xapo is leading the charge by “expanding operations” in the British territory.

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.”

Albert Isola

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.

Crypto Hardware Wallet Ledger Saw Sales Double After Binance Got Hacked, CEO Claims

Francisco Memoria

The CEO of cryptocurrency hardware wallet Ledger, Pascal Gauthier, has recently revealed that after leading cryptocurrency exchange Binance got hacked for $40 million last week, the firm’s sales doubled, presumably as users worried about their funds’ security.

According to TheBlock, Gauthier’s words came as he spoke in front of an audience at the Atomic Swap conference in New York. The sales increase was revealed as the future of money and the importance of security in the cryptocurrency space were addressed. Gauthier was quoted as saying:

Binance got hacked, and the day Binance got hacked, our sales doubled.

As CryptoGlobe covered, Binance got hacked last week and saw hackers take over 7,070 BTC (then worth over $40 million) from its hot wallet in one transaction. The security breach saw the attackers exploit the API, 2FA, and withdrawal validation areas of the exchange, which has since made “significant changes” to its security.

Gauthier added that his firm believes cryptocurrencies are a “great technology” that has a weakness in securing “the end point and the private keys.” He reportedly added that Binance getting hacked in the first place shows how young the space still is.

He added:

We believe the security needs to happen, and we are very excited about building the security layer for the industry.

Gauthier also noted that it can be stressful to deliver a product crucial for users’ security, and that security becomes even more challenging if the crypto market keeps on surging. As such, a significant increase in the crypto ecosystem’s market cap could see leader need additional investment.

Notably, the cryptocurrency hardware wallet manufacturer received a $2.9 million investment from Samsung earlier this year, as the South Korean tech giant itself has been moving into the crypto space. The CEOs words come as the first batch of the Ledger Nano X wallet is being shipped.