Xapo though incorporated in Hong Kong and based in Palo Alto, has officially announced that it will move its corporate headquarters and most of its operations to Zurich, Switzerland. The reason behind the decision to relocate to the new host is the country’s long history of political neutrality and regulatory stability.
Apart from political neutrality and regulatory stability, another feature that Switzerland offers for the Bitcoin company is privacy. There are a lot of privacy concerns from some users since Xapo’s current corporate headquarters is located in the United States where the local government is known to not respect citizen’s privacy.
The company says that a lot of customers complained about the data being compromised as the local governments are known to obtain large amounts of personal data from large companies. Nonetheless, this relocation will allow Xapo to better protect user’s privacy and maintain a small presence in Palo Alto, California to serve their U.S. customers as well.
Xapo which allows users to buy Bitcoins on its platform, store them in an insured cold storage vault, has also come up with Bitcoin Debit Card. Though currently under beta, the Bitcoin Debit Card is expected to bring exciting features for the customers. However, even before the official launch, the relocation has surprised some observers.
Relocation to Secure Users Funds
Xapo believes that the relocation will also help the company provide umpteen security to the user funds. According to the company with cold storage infrastructure located in Zurich, it will be able to provide tight security to customers’ Bitcoins. Even CEO Wences Casares admitted that the decision was made after clients raised concerns about Bitcoin regulation and increased oversight on transactions.
According to Wences Casares the company decided to do what they had been asking it to do for a while i.e. move the main company to Switzerland and benefit from the safeguards. He also makes it clear that most of Xapo’s customers make use of their services primarily for storage and security, with their holdings comprising long-term bets of high net worth clients.
Nonetheless, Xapo is also planning to continue to improve their cold storage vault service to include security features such as multisig and offline private key generation. After a lot of hacking attempts on the online Bitcoin wallets, Bitcoin wallet providers have started offering cold storage as these are safe and secure.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org