Xapo Will Stop Providing Services For US Customers In March 2021

Xapo will stop providing services for all US customers starting from March 2021 according to a report that we have in today’s crypto news.

Xapo is one of the earliest BTC custodians on the market. As it now seems, Xapo will stop providing services to customers in the United States as the company said:

 “Due to a change in our global business strategy, Xapo, Inc. is leaving the U.S. market and will be closing all U.S. customer Xapo accounts. As a result, we’ll need you to transfer your funds to an external Bitcoin address.”

Xapo is in the middle of pivoting to a new digital banking service according to a blog post. Confirming the move, Founder Wences Caseras wrote:

 “Our core value proposition is to protect our client’s life savings, mostly in emerging markets. Our target clients are people who have more than $30,000 in savings but less than $1 million who do not want to keep all of their savings in their local currency or in their country. Because of the amounts they have, they do not have access to international private banking services.”

Anywhere, anytime, any currency.#Xapo #FinancialFreedom #bitcoin #DigitalWallet pic.twitter.com/s6vtLIkdaF

— Xapo (@xapo) April 13, 2020

After obtaining a banking license in Gibraltar, the company realized that it will need to set up a separate organization in order to comply with the US banking regulations in this kind of market where there’s a strong demand for specific services. Caseras added:

 “Serving the U.S. market would require quite a lot of effort, time and investment, it would require a separate organization within Xapo to support it and it would still yield a worse product than what we can offer internationally.”

Users asked from the exchange to transfer their BTC holdings to an external address but buying and receiving BTC within the app has also been disabled. Xapo is one of the earliest participants in the Facebook Libra project which recently changed its name to Diem.

As recently reported, The digital asset trust and security company named BitGo has appointed the wallet provider Xapo’s former senior vice president as its new chief revenue officer (CRO). The crypto custodian BitGo made the new hire recently, naming the former Xapo official Pete Najarian as its new CRO. According to the reports, Najarian will not serve as BitGo’s CRO and will report to the chief executive officer (CEO) of the company, Mike Belshe.