The world of digital assets regulation is constantly evolving, with new challenges and opportunities emerging every day. In a recent interview, Joey Garcia, Director and Head of Regulatory Affairs and Public Relations at Xapo Bank, shared his experiences and insights into the development of regulatory frameworks for digital assets.
Founding a Regulatory Framework
Joey Garcia’s journey with Xapo Bank began in 2014 when he was approached by Wences Casares to establish a regulatory framework for cryptocurrencies in Gibraltar. Despite facing initial skepticism and resistance, Garcia and his team persisted in their efforts. Their hard work paid off, and by the end of 2017, they had successfully developed a comprehensive regulatory framework for digital assets in Gibraltar.
Creating a Prudential Regime
Garcia emphasized the importance of creating a prudential regime that goes beyond basic compliance. By being ahead of the curve and implementing regulations that were more stringent than the FATF’s recommendations, Gibraltar established itself as a leader in the regulatory space. This forward-thinking approach attracted major players in the digital assets industry and solidified Gibraltar’s position as a hub for crypto innovation.
Xapo Bank’s commitment to security and compliance sets it apart in the cryptocurrency industry. Garcia highlighted the bank’s transition from being the largest Bitcoin wallet provider to a fully licensed bank. He emphasized the importance of maintaining a high liquidity ratio and ensuring that customer assets are fully collateralized to uphold security standards. Xapo’s dedication to security is evident in its operations, with Garcia stating that the bank maintains a liquidity coverage of around 3,000%.
Garcia’s role extends beyond Xapo Bank, as he serves as a specialist consultant to the United Nations, providing training and assessments to regulatory authorities worldwide. His experience working with countries like Singapore, Cambodia, and Thailand has given him a unique perspective on the global regulatory environment. Garcia advocates for an approach to regulation that takes into account both global standards and local realities, emphasizing the importance of education and awareness in shaping regulatory frameworks.
Looking ahead, Garcia envisions a future where regulatory frameworks for digital assets continue to evolve in response to the dynamic nature of the crypto industry. He believes that trust and reliability will be key factors in the adoption of crypto services, emphasizing the importance of establishing a longstanding reputation within the industry. Xapo Bank aims to be a secure pillar in the financial ecosystem, offering unique services that bridge the gap between traditional finance and digital assets.
Joey Garcia’s insights provide a valuable perspective on the challenges and opportunities in the world of crypto regulation. His work with Xapo Bank and various regulatory authorities demonstrates the importance of a proactive and informed approach to shaping the future of digital finance. As the landscape of crypto regulation continues to shift, it is essential for industry leaders like Garcia to pave the way for a more secure and transparent financial ecosystem.
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