Xapo services, a financial service company that provides Bitcoin wallets, says it will no longer serve its American customers. The information came via a recently circulated mail to its numerous American clients. The mail cites changes in business strategy as the main reason why they would discontinue operations in America.
Transfer your Bitcoins to Another Address
The company known as one of the earliest custodians of Bitcoins, would be leaving the US after 2 years of operation. In 2018, Xapo was the 6th crypto-related company to be given a BitLicencse by the New York State Department of Financial Services. The BitLicense allowed it to operate in New York and America in general. The crypto-based company plans to stop operations from March 1.
“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 says in the email. On the official Xapo app, users are unable to receive and accept Bitcoin into their wallets. Selling and sending of BTC is, however, still active at the time of writing.
Revamps as a Digital Bank
In May, the Bitcoin custodial company announced it was transforming into a digital bank. Xapo explained that the new bank would help their clients keep their life savings. The company also said it was targeting those who have between $30,000 to 1 million dollars who would love to keep them in a different currency or companies. Since this target group cannot access International private services, Xapo would help them get the equivalent of such.
It seems that Xapo has now come to the terns that it needs different infrastructure to continue banking services in the United States. The Hing Kong-based company has already secured a banking license in Gibraltar. Wences Casares, the founder of Xapo, said his company would have to go strict regulations in a place “without strong demand for their specific services.” The company has decided to leave the US while continuing operations in other countries.