Xapo is among the biggest and most popular names when it comes to the world of cryptocurrencies. The company, which is primarily known for their cold storage for cryptocurrencies, is also popularly known for its cryptocurrency wallets and for its Bitcoin debit card services. Xapo is now moving major operations from their Hong Kong based office to their Switzerland office.
Xapo has, for a long time, operated out of Hong Kong. The company, however, is now moving base to Zug in Switzerland - which is rapidly emerging as one of the hottest crypto-hubs of Europe. This move has been made keeping in mind the non-US Bitcoin wallet customer services, which are having a hard time because of the regulations from Hong Kong. Xapo President Ted Rogers said:
“It was once thought that Hong Kong was the holy grail of crypto regulations. But it has become more opaque...It’s a reality of this industry that you have to be agile and react to regulatory changes all the time. Swiss regulators are smart, interested and sophisticated in dealing with the financial markets … Nothing has changed my belief that Switzerland is the right place for a blockchain or crypto project.”
It has also been pointed out that all the cash accounts of the company will continue to be in London. As of this writing, the company has not made its status clear - it is a Hong Kong incorporated company, but a majority of its operations will now take place from the Switzerland office. While Xapo has a staff of over 250 people employed across the globe, the Hong Kong office has only 10 employees. Rogers added that the status of Xapo is ‘an open question’ for now.
Xapo is among the most popular names when it comes to storing cryptocurrencies in a cold storage setup. Last year, reports had indicated that Xapo holds close to 6.25% of all Bitcoins in circulation when the price per Bitcoin was $9,000. This made Xapo’s Bitcoin holdings go beyond $10 Billion! The report had also pointed out that Xapo ensures that the currency that they have is secured - and have reportedly been making use of underground bunkers to ensure that the cryptocurrencies remain safe.
A number of European nations and regions are becoming crypto-friendly. Switzerland is among the most credible of such names. Other names on the list include the likes of the Isle of Man, Malta, Gibraltar and Estonia. A significant portion of the economy of these countries depend upon these firms setting up their offices with them. The Xapo president had previously said that one of the best reasons to do business in Switzerland is the country’s decentralized model of governance.
While Xapo is most popularly known for the cold storage of cryptocurrencies, the firm’s crypto Debit Cards are also quite popular. Xapo is among the first and the biggest names to offer cryptocurrency-based financial services. However, Xapo’s debit card plans didn’t really work out well following Visa’s decision to end all card programs maintained by Wave Crest.
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