According to Xapo’s president, Hong Kong used to be thought of as “the holy grail of crypto regulations,” but that in fact the jurisdiction has “become more opaque.”
Rogers argued that he always considered Switzerland “the right place” for blockchain and crypto-related projects to flourish, stating that Swiss regulators are “smart, interested and sophisticated in dealing with the financial markets.”
According to the report, Xapo’s geographic transfer of operations will involve moving support for non-United States clients from Hong Kong to Switzerland, while cash accounts will reportedly operated from London.
In November 2018, the Hong Kong’s Securities and Futures Commission published a statement with guidelines for funds dealing with cryptocurrencies. The new regulations received a critical response from some industry experts, who claimed that the guidelines might prevent new crypto businesses from entering the market.
Meanwhile, another company has recently moved to Switzerland, reportedly also for a better regulatory situation. On Jan. 1, Bitcoin ATM supplier Lamassu relocated to Switzerland, citing regulatory difficulties in other countries.