The significant strategic move could place the country as the home of bitcoin technology in the world. The digital currency is consistently gaining acceptance around across the world.
While companies which provide virtual wallets have yet to become the norm and face a multitude of legal quagmire which typically drives away any non-savvy customer, in Switzerland this scenario is set for a radical change.
Xapo has received a “conditional approval” for running its bitcoin wallet service in the country. However, it will not yet receive a secure banking license. As of now it has been classified as a financial go-between.
It will have to meet a few unspecified terms and have to compulsorily participate in a self-regulation.
It’s very likely that the fact that Xapo does not take deposits, helped it gain the approval, which is more in the nature of the proverbial foot-in-the-door.
Xapo has clarified it will not serve any American customers, due to the legal uncertainty surrounding the technology in the U.S.
The development is significant in the country’s history. As you can imagine, Switzerland plays a vital role in the world’s financial community. In what could be a bid to potentially future-proof itself, the country’s has been aggressively courting bitcoin operations.
The fact that it has now received legal traction is important. Now the country can open its doors to digital wallets around the world and could become an example for other countries to follow.
Switzerland has the potential to be a home base for the crypto-currency.