Regulatory & Compliance

Xapo operates under a dual regulatory framework, fully overseen by the Gibraltar Financial Services Commission (GFSC), which clearly separates our fiat and digital asset operations. Our traditional banking entity (Xapo Bank) acts as a fully licensed credit institution to handle your fiat operations. Under this entity, eligible fiat deposits are protected up to £120,000 by the Gibraltar Deposit Guarantee Scheme (GDGS).

In parallel, your digital wealth is managed by our distinct Virtual Asset Service Provider (VASP) entity, which holds permissions as a regulated Distributed Ledger Technology (DLT) Provider. This clear distinction between the Bank and the VASP ensures that your crypto assets are legally ring-fenced and subject to specialised oversight, offering you the robust consumer protection expected of a tier-1 financial institution.

Yes. At Xapo Bank, we believe in transparency and institutional-grade accountability. We partner with a Big 4 accounting firm to conduct comprehensive, independent annual audits of our financial statements. This provides verified proof that our balance sheet is secure, our capital and liquidity ratios far exceed standard requirements, and all member assets are accounted for to the highest international standards.

On an operational level, we enforce strict Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols, paired with an internal Zero Trust framework to ensure your personal data remains strictly confidential and secure.

Our Virtual Asset Service Provider (VASP) licence legally mandates the strict segregation of our members' Bitcoin from our own corporate funds. Because your Bitcoin is held in a 1:1 reserve and legally ring-fenced, we never rehypothecate or use your assets for our own trading or working capital. This model ensures your wealth is protected under a clear legal framework and remains exclusively yours, completely insulated from any institutional liabilities.

Gibraltar is a globally respected, tier-1 financial jurisdiction and a pioneer in establishing a clear, purpose-built regulatory framework for Distributed Ledger Technology (DLT). Operating from Gibraltar allows us to offer the rigorous consumer protections of traditional banking while leveraging legal certainty for digital assets. It is the ideal jurisdiction for secure, transparent, and compliant digital banking.