Switzerland is a well-respected country for its financial benefits. Not only does Switzerland offer more anonymity and privacy protection than any other country in the world, but they are also catching the eye of Bitcoin-related companies. The latest example comes in the form of Bitcoin company Xapo, who recently moved their headquarters to Switzerland.
Switzerland & Bitcoin – Interesting Combination
Over the past few decades, Switzerland has been synonymous with three things: watches, chocolate and being home to some of the world’s largest banks. Many people often refer to Switzerland as a “haven” for laundering money or conducting illegal financial operations, even though there are some rules even Switzerland has to adhere to.
But now that Bitcoin-related companies are also showing an interest in Switzerland due to its financial status, that situation might take another direction. Xapo, one of the major players in the Bitcoin space, offers a form of digital bank for BTC owners. Needless to say, a digital bank and the whole concept of Switzerland seem to go hand in hand.
The Xapo move is a direct result of Switzerland’s regulatory stability, a deep-scaled tradition in global finance and international neutrality. This sums up the features that Xapo lacked in the United States, where none of these traits are found in abundance. Especially regarding regulatory stability, there is a lot of work to be done when it comes to Bitcoin and digital currency.
Xapo offers a digital Bitcoin wallet – amongst other things – which lets users store their digital currency wealth in a safe place. And rather than keeping those funds in an insecure manner, Xapo moves all funds into cold storage. Or, to be more precise, it operates more on the same principles as a vault, allowing funds to be stored offline.
Xapo Strengthens Ties With Switzerland
As soon as someone mentions “storing large amounts of funds in a vault”, people will automatically think of Switzerland. Xapo did so, too, as the company relocated its vaults from Palo Alto, CA in the United States to Switzerland. And now that the headquarters have been moved to Zurich, Xapo is enjoying all of the benefits offered by the Swiss government.
It has to be said though that Xapo is not the first Bitcoin-related company to move its headquarters outside of the United States. Most of this can be attributed to the regulatory uncertainty regarding digital currency in the US, as certain states may or may not require a business to obtain a specific license.
Especially now that certain regulators feel that any Bitcoin-related company has to keep a record of all of their customers – including personal information – we might see more companies move their operations to Switzerland. After all, it is deemed an illegal act for banks to reveal an account holder’s identity in that country.
That being said, this does not mean Xapo will stop verifying the identity of their users any time soon. Due to the nature of the services offered by Xapo, the company will actively monitor the opening of new accounts, and any suspicious activities will be reported to government officials, if so needed.
Images courtesy of Xapo