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Xapo Bank

Rock Solid and Consumer Friendly: A Closer Look At The Gibraltar Laws That Protect Our Members


Consumer protection laws are in place to protect consumers from fraudulent and unfair business practices. These laws are essential to ensure that consumers are not exploited, misled, or taken advantage of by businesses and if they are that those businesses are held to account.

By being licensed and regulated In Gibraltar, Xapo Bank can offer its members the protection of such laws alongside the Gibraltar Deposit Guarantee Scheme, financial services regulations and applicable common law principles that protect them. In this blogpost we take a closer look at these laws and how Xapo Bank complies with them.

Consumer Rights on Contracts Regulations 2013 (CRCR)

The CRCR is a law that governs consumer contracts in Gibraltar. The CRCR applies to contracts between businesses and consumers, including contracts for the sale of goods, the supply of services, and distance contracts. The CRCR requires businesses to provide consumers with certain information before a contract is made, such as the main characteristics of the goods or services, and the total costs involved. Businesses must also provide consumers with a cancellation or ‘cooling off’ period of 14 days, during which time the consumer can cancel the contract without penalty. 

At Xapo Bank, we comply with the CRCR by providing our members with clear and concise information about our products and services, including the fees and charges associated with them. We also provide our members with a statutory cancellation or ‘cooling off’ period of 14 days for our services, allowing members to withdraw from our service within this time period, for whatever reason, without incurring any costs. This right is currently being supplemented by a 90 day free trial. In summary, having CRCR apply to Xapo Bank means that we have a legal obligation to treat our members fairly and give them access to clear information before entering into a contract.

Consumer Protection (Unfair Trading) Act 2008 (CPA)

The CPA is a law that prohibits unfair trading practices in Gibraltar. The CPA applies to all businesses that sell goods or services to consumers. The CPA prohibits businesses from engaging in unfair commercial practices, such as misleading or aggressive sales techniques, false or deceptive advertising, and hidden charges.

Xapo Bank complies with the CPA by providing clear and accurate information about its products and services to our members and prospective members. A clear example of this is our website and all the information contained in it. Xapo Bank does not engage in misleading or aggressive sales techniques, and it does not use false or deceptive advertising. Xapo Bank also does not charge hidden fees or charges. All our fees are clearly set out in our Fee Information Sheet which is made available during our onboarding process, and before you commit to opening a Xapo Bank account.

The CPA prohibits various types of unfair commercial practices, including misleading actions, misleading omissions, aggressive commercial practices, and unfair commercial practices. It also provides for enforcement measures, such as the power to seek injunctions and impose penalties. The CPA empowers consumers to seek redress for harm suffered as a result of such practices. The law applies to all commercial activities and transactions in Gibraltar and is therefore adhered to by Xapo Bank. Overall, the CPA is an important piece of legislation that helps safeguard our members rights and interests.

Unfair Terms in Consumer Contracts Act 1998 (UTC)

The UTC is a law that prohibits the use of unfair terms in consumer contracts in Gibraltar. The UTC applies to contracts between businesses and consumers, including contracts for the sale of goods, the supply of services, and distance contracts. The UTC prohibits businesses from including unfair terms in their contracts, such as terms that limit or exclude the consumer's legal rights.

At Xapo Bank, we comply with the UTC by ensuring that our terms and conditions with our members do not include unfair terms that limit or exclude their legal rights. We also provide prospective members with access to all terms and conditions and other important documents and information during the onboarding process before they commit to opening an account with us. Members always have access to these documents after they have been agreed to directly from the Xapo Bank app.

Common Law

As a British Overseas Territory, Gibraltar’s legal system is based on English common law, a body of law based on judicial decisions and precedent rather than on written statutes. Common law principles on consumer protection have been developed through court decisions to protect consumers from unfair practices and ensure that they are treated fairly by businesses.

A well known common law principle that is binding on Xapo Bank is the principle of misrepresentation. This principle holds that if a business makes false or misleading statements about a product or service, and a consumer relies on those statements to make a purchase, the business can be held liable for any damages or losses suffered by the consumer.

The principle of unconscionability is also another important binding principle that prohibits Xapo Bank from taking advantage of consumers who are in a weaker bargaining position, such as those who are inexperienced or vulnerable. Businesses that engage in unconscionable conduct can be held liable for any damages suffered by the consumer.

These are just a couple of examples of the common law principles on consumer protection that Xapo Bank must comply with, that add another layer of legal protection to our members and their wealth and ensure that the highest standards of consumer protection are always adhered to.

Gibraltar Deposit Guarantee Scheme (GDGS)

The GDGS is a bank deposit protection in Gibraltar created by law and independent of the industry operators, giving bank depositors confidence that their deposits are protected up to a certain amount.

As Xapo Bank is a registered and licensed bank in Gibraltar, it automatically offers its members protection under the (GDGS). This scheme provides protection to depositors in Gibraltar banks, including Xapo Bank, with eligible fiat deposits protected up to the US Dollar equivalent of EUR 100,000. Xapo Bank members are not required to pay for this cover, and the scheme is entirely financed by the licensed banks in Gibraltar, not by depositors. In the unlikely event of a claim, the GDGS would aim to automatically reimburse affected members within 10 working days.

You can read more about the GDGS and how it protects our members.

Overall, statute and the common law have played an important role in shaping consumer protection laws and regulations in Gibraltar and provide a further layer of legal protections on top of the financial services laws that apply to Xapo Bank. By providing legal rights and remedies for consumers, these principles have helped to ensure that businesses like Xapo Bank operate fairly and transparently, and that consumers are protected from harm.

If protecting your wealth is of importance to you, explore the benefits a Xapo Bank membership offers and apply to join today.  


This article is for general information purposes only and is not intended to constitute legal or other professional advice or a recommendation of any kind whatsoever and should not be relied upon or treated as a substitute for specific advice relevant to particular circumstances. We make no warranties, representations or undertakings about any of the content of this article (including, without limitation, as to the quality, accuracy, completeness or fitness for any particular purpose of such content), or any content of any other material referred to or accessed by hyperlinks through this article. We make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up-to-date.

In the case of conflict between the content of this blogpost and any document it is referring to, the latter shall prevail and apply to those specific aspects. The information provided is for information purposes only, and is not for the purpose of providing legal advice.

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