Xapo Bank Enters UK Market, Offers Interest-Bearing USD and Bitcoin Account

August 5, 2024 Bitcoin.com

Why this tiny country is adopting the Bitcoin Lightning Network

September 29, 2022 Coin Telegraph

Gibraltar is becoming well known for its pioneering crypto regulations, support for blockchain development and bitcoin adoption.

Cointelegraph reporter Joe Hall visited the country of Gibraltar to explore Bitcoin adoption on The Rock, as the peninsula is known locally, and how the adoption of bitcoin for shopping in the territory is impacting business.

The visit was also an opportunity to visit Xapo Bank, the world's first private financial institution to combine traditional banking with Bitcoin. Coinbase acquired its custody business in 2019, making the American exchange the largest crypto custodian in the world.

The British Overseas Territory of Gibraltar is known for its pioneering crypto regulations, support for blockchain development and bitcoin adoption, with many retail businesses using the Lightning Network — a layer two network that enables off-chain transactions — to accept bitcoin as payment around the peninsula.

"When you talk about adoption of the use of Bitcoin, is it going to come? Yes, it is as more and more jurisdictions begin to regulate. And what is for me, the ideal is when there are enough countries doing it."

April this year, Gibraltar introduced a new regulatory package for distributed ledger technology (DLT) service providers, providing clarity for crypto businesses in regard to threats of market manipulation and insider trading.

Huobi wins license in the British Virgin Islands, no timeline for the UK yet

September 9, 2022 Coin Telegraph

Coin Telegraph

Huobi positions its subsidiary Brtuomi Worldwide as one of the first exchanges to provide compliant crypto derivatives and trading services in the British Overseas Territory.

Major cryptocurrency exchange Huobi continues to expand its global footprint by entering the British Virgin Islands, a British Overseas Territory.

Huobi officially announced on Friday that it secured an investment business license from the Financial Services Commission (FSC) of the British Virgin Islands. The approval allows Huobi to operate a virtual asset exchange under the subsidiary Brtuomi Worldwide Limited (BWL).

According to the announcement, BWL plans to offer a range of crypto trading services, including spot trading of cryptocurrencies like Bitcoin (BTC) and Ether (ETH) as well as derivatives trading.

The company positions itself as the first digital asset trading platform operator in the British Virgin Islands licensed to run an institutional-grade crypto trading platform for both professional and retail investors.

“We believe that this license will have major implications for institutional investors, as it will make us the first exchange to provide compliant crypto derivative products and trading services in the territory,” Huobi Group chief financial officer Lily Zhang said, adding:

“Many institutional investors in the crypto industry operate out of the British Virgin Islands, so we think there’s a large market opportunity there.”

Zhang noted that Huobi also holds a distributed ledger technology license in the territory of Gibraltar. Huobi Group doesn’t have any specific timeline as to when services will expand to the rest of the United Kingdom, the CFO told Cointelegraph.

Apart from becoming an officially regulated entity in the British Virgin Islands alongside companies like Alameda Trust and Three Arrows Capital, BWL is also a member of the FSC’s financial innovation sandbox.

According to official FSC records, BWL is the second sandbox participant approved by the FSC alongside Structure Financial, a global trading platform facilitating crypto-based investing and lending. The regulator established the sandbox in 2020 with an aim to support innovation in the growing fintech sector and allow businesses to trial new products and services.

“Going forward, we will work closely with the British Virgin Islands regulators to develop a suite of licensed trading products and services and foster the cryptocurrency industry’s growth in the territory,” Zhang stated.

The British Virgin Islands is one of the major global destinations for cryptocurrency-related firms. According to data from PwC’s fourth annual global crypto hedge fund report 2022, the British Virgin Islands overtook the United States as the second most popular location for crypto hedge funds.

In June, a court in the British Virgin Islands ordered the liquidation of Singapore-based venture capital firm Three Arrows Capital. The firm is registered by the FSC as a professional fund, according to official data.

Rock on, Gibraltar: Pro-crypto regulation pulls Binance and big players

August 2, 2022 Coin Telegraph

Binance

Crypto experts on The Rock of Gibraltar shed light on the crypto-friendly jurisdiction; it could explain why Binance is now recruiting on the British Overseas Territory.

Gibraltar's 6.8km2 territory houses 35,000 people and several large international crypto companies. The British Overseas Territory of Gibraltar, ruled by the United Kingdom and an important gateway to Europe, is an attractive jurisdiction for distributed ledger technologies (DLT) or simply crypto.

The world’s largest cryptocurrency exchange, Binance, is now hiring for four roles in the “Rock of Gibraltar,” up from two roles one week ago. CZ, CEO of Binance, met with Chief Minister of Gibraltar, Fabian Picardo in December 2021 after it was revealed that Picardo had the Binance app on his laptop:

Head of State’s tweet. What do you see? https://t.co/VKVzd8972T
— CZ Binance (@cz_binance) December 1, 2021

Reportedly, CZ visited ‘The Rock’ in 2022, and Binance Gibraltar job openings have since popped up on the exchange's website. Cointelegraph approached Binance to query when the Gibraltar office would open. A spokesperson from Binance, which has no official headquarters internationally, told Cointelegraph that the group “is a remote-first organization with many of our employees working remotely.”

“Binance will be establishing multiple regional offices. France and Dubai will be our offices in the Europe and Middle East regions, respectively.”

The group did not respond to the question of whether the group would establish a physical presence in Gibraltar. However, Binance would be in good company in the increasingly pro-crypto British Overseas Territory.

Bitso and Huobi established their European operations from Gibraltar; Damex has a physical presence and countless advertising boards around the city and Tap.Global has offices on the main street. The government is certainly crypto friendly. The Member of Parliament for Digital and Financial Services, Albert Isola, told Cointelegraph that he’s a HODLer:

Wait...how much $BTC does the Minister of Digital and Financial Services of Gibraltar hold? @JoeNakamoto sat down to discuss crypto adoption, regulation, and views on Bitcoin in Gibraltar. pic.twitter.com/NKxdeNKbvn
— Cointelegraph (@Cointelegraph) August 2, 2022

Joey García, the Head of Public Affairs for Bitcoin-first Xapo Bank, a fully regulated bank based in Gibraltar, told Cointelegraph that Gibraltar is “nimble” and an ideal territory for adopting new technologies:

“Small jurisdictions can move faster. We've seen it again and again [in Gibraltar], whether it’s crowdfunding or new areas of development. Xapo, for example, got their e-money license in Gibraltar in 2017.”

Xapo Bank CEO Wences Casares is known as “patient zero” in the Bitcoin (BTC) world. The Argentian businessperson reportedly advocated for Bitcoin among tech execs in Silicon Valley. Quartz reported that Casares attempted to orange-pill Bill Gates, while Bloomberg reported that Xapo custodied over $10 billion Bitcoin in its vaults.

The Xapo Branch at 1 Grand Casemates Square.

The Xapo vaults are now located in Grand Casemates Square, Gibraltar’s tourism hotspot. Millions of cruise ship day trippers stroll past the historic walls that form Xapo’s walls. Anouska Streets told Cointelegraph that “There’s a tension and juxtaposition between the old banking work and the new crypto landscape; to be that bridge between old and new.” Commenting on Gibraltar as a jurisdiction, she explained:

“As a jurisdiction, it’s awesome - the regulators are open and helpful in terms of how to develop - not just Bitcoin but other crypto capabilities. It’s what it stands for: for years.”

On regulation, Minister Isola also chimed in. He explained that “the regulation has got to be an enabler, a business, not a stopper. So in my view, pragmatic and practical regulation helps the business.”

Indeed, businesses have since started running with Bitcoin. Major retail chains including Costa Coffee now accept Bitcoin in Gibraltar. Neil Walker, managing director at Sandpiper GI — the group managing the retail franchises — told Cointelegraph that Bitcoin and in particular the lightning network can make things “more frictionless.”

“In today's world, people should be able to move quickly and easily between currencies with next to zero fees and the lightning network could enable that, whether it's potential for cross-border workers in Gibraltar or for visitors who are coming to Gibraltar to spend their money. And in our stores.”

Obi Nwosu, CEO of Fedi and a board member of BTrust–the initiative founded by Jack Dorsey and Jay Z–commented Gibraltar has always been a fast-mover.

“I’m not surprised people on the ground are trialing Bitcoin; that merchants on the ground are more interested in accepting Bitcoin.”

Molly Spiers, marketing head at CoinCorner, explained that Bitcoin adoption in British Overseas Territories is flying. “Gibraltar is hot on the heels of the Isle of Man. There are currently 7 stores in Gibraltar now accepting Bitcoin - including big names like Costa Coffee, Hotel Chocolat and Card Factory - and we have about another 20 potentially interested.”

As for Minister Isola, when prompted on whether Gibraltar should mimic some of the Isle of Man’s success with Bitcoin adoption, he explained: “I've always said that if somebody has a piece in their legislation that is better than ours, I wouldn't hesitate to adopt it. At the end of the day, we're looking for the most effective, enabling, an innovative regulatory framework that we can find.”

As a result, not only can crypto operators meet, network and rub shoulders with regulators on the tiny patch of land, but the territory is quick to respond to market moves.

‘I have Bitcoin for the benefit of my kids,’ says Gibraltar MP

July 28, 2022 Coin Telegraph

Bitcoin Payments

In an interview with Cointelegraph, MP Isola detailed Gibraltar’s crypto regulatory landscape and his interest in Bitcoin.

Located in Europe, on the southern tip of Spain, the British Overseas Territory of Gibraltar is a bubbling hotbed of cryptocurrency adoption.

In an interview with Cointelegraph, Albert Isola, Minister for Digital and Financial Services for Her Majesty's Government of Gibraltar, explained the territory's approach to crypto and shed some light on his own investment interests.

Isola played a pivotal role in shepherding Gibraltar’s purpose-built distributed ledger technology (DLT) regulatory framework. However, he’s also a Bitcoiner.

*Isola (left) in front of a picture of the Gibraltar peninsula, known as “The Rock.”*

Speaking from the Ministerial offices in Gibraltar, he told Joe Hall “I do have Bitcoin.” He continued:

“I’m not at the stage yet where it’s something that I’d use on a regular basis, it’s more about buying some for the benefit of my kids in the years to come. I don’t touch it.”

While spending Bitcoin (BTC) at one of the Costa Coffee’s that now accept Bitcoin in Gibraltar might not be his thing, he explained that adoption of Bitcoin is going to increase, “as more and more jurisdictions begin to regulate it:”

“I’m not at the stage yet where it’s something that I’d use on a regular basis, it’s more about buying some for the benefit of my kids in the years to come. I don’t touch it.”

Gibraltar is an appealing regulatory jurisdiction for crypto companies. Since 2018, when distributed ledger technology (DLT) legislation came into force, more and more companies have considered the European territory. Obi Nwosu, co-founder and CEO of Fedi, told Cointelegraph, “In the realms of regulated jurisdictions, Gibraltar has always been the most interesting.” He brought Coinfloor (now CoinCorner) to Gibraltar four years ago, following the 2018 regulations.

Xapo, a Bitcoin-based private bank recently chose to open its international branch in Gibraltar. Its CEO Wences Casares is known as “Patient Zero” after orange-pilling Silicon Valley executives, while the Xapo offices are carved out of Gibraltar’s ancient military defenses. Moorish fortifications dating back to 711— the oldest ramparts in Gibraltar — now defend the office wine cellar.

*The door to Xapo’s wine cellar. The walls are 1,300 years old.*

Indeed, despite a small population of 35,000, the territory packs a punch in the crypto space. Crypto companies such as Damex and Tap.global have or had a presence in the tiny land area. Plus, Mexican exchange Bitso partnered with Gibraltar late last year to digitize government services.

Regulation is “not a joke — it’s partner style,” Xapo chief technology officer Anouska Streets told Cointelegraph. Indeed, in recent months Gibraltar rolled out regulations to combat market abuse. Isola reinforced the point:

“If they [DLT companies] are not prepared to meet the standards of regulation and quality that we aspire to, they will not be licensed.”

The government used the same stringent yet partnership-first process for the gaming space in 2014. Now around 75% of the United Kingdom’s online gaming is done from Gibraltar, from around 15 businesses, Isola reported.

*Isola also led gaming and commerce activities on The Rock.*

2018 was the last Bitcoin and cryptocurrency space bear market in which the DLT regulation was fleshed out, and in the ensuing bull market of 2020 and 2021, Gibraltar reaped the rewards. In the 2022 bear market, or “down time,” as Isola delicately describes it, businesses in Gibraltar are “very well placed to take advantage of the upside and at the same time manage themselves in the downtime:”

“I think our DLT firms are well placed to ride the storms and then take advantage of the upside as and when it comes.”

While Bitcoin-backed businesses benefit from Gibraltar’s approach to regulation, in light of recent Bitcoin bear market rallies, Isola might be right in wishing to hold onto his Bitcoin for the next generation.

Cointelegraph visited Gibraltar to conduct the video interview which will contribute to Cointelegraph’s media coverage on Youtube. Subscribe here.

The Costa’ Bitcoin on the rise: Major chains give Gibraltar a BTC boost

July 26, 2022 Coin Telegraph

Bitcoin Community

Major franchises in Gibraltar including Costa Coffee, the Card Factor and Hotel Chocolat now accept Bitcoin over the Lightning Network or on-chain.

“But you can’t buy a coffee with Bitcoin,” the Bitcoin (BTC) critics chanted. Gibraltar, a tiny British Overseas Territory in Europe just blew a hole in that FUD as popular coffee chain Costa Coffee now accepts Bitcoin over Lightning.

Hotel Chocolat, the Card Factory and the Gibraltar bakery also accept Bitcoin as a currency in the British Overseas Territory. The well-known franchises take advantage of Bitcoin’s Lightning Network (LN) to accept customers’ money. The LN is ideal for microtransaction cappuccinos, postcard payments or ice cream investments as reporter Joe Hall found out during a Gibraltar shopping spree.

Lightning-enabled Bitcoin merchants in Gibralatar. Source: CoinCorner

Payments are instant, frictionless and charge merchants less than the typical Mastercard or Visa payment rails. Neil Walker, managing director at Sandpiper GI — the group managing the retail franchises — told Cointelegraph that when using a Lightning-enabled card, “It's no different to using a contactless credit card.”

“It is just as quick you can tap and pay contactless credit cards, you can tap and pay lightning, scan a QR code. And whilst I haven't timed it, I reckon it's almost exactly the same speed.”

CoinCorner, a Bitcoin exchange on the Isle of Man, partnered with Sandpiper GI, to help in equipping merchants with Bitcoin Lightning point of sale (PoS) devices.

RACE OF THE RAILS ‍♂️

Bitcoin #Lightning payments vs #fiat contactless payments at the #Gibraltar Bakery.

£2.20 loaded up on both PoS.

WHO WINS?? ⚡️ ⚡️

⁦@CoinCorner⁩ ⁦@CoinCornerMolly⁩ pic.twitter.com/b3ezy7FIeq
— Joe Hall (@JoeNakamoto) July 25, 2022

Walker shared that even for Bitcoin naysayers, the ease with which customers and merchants can transact is a no-brainer. He told Cointelegraph, “whether you believe in Bitcoin or not, you can use the lightning network to cut your transaction costs and to pay via mobile.” Given that it’s a neutral payment rail, he said that customers can traverse currencies easily:

“For a long time, the idea of paying with bitcoin seemed alien to both businesses and individuals, but with the launch of The Bolt Card and the ability to “tap and pay” via lightning, the user experience is quick, easy and familiar to everyone.”

Gibraltar welcomes 8 million tourists onto the rock per year, from countries including the United States, Canada, South Africa and the United Kingdom. Plus, Walker estimates that roughly 15,000 cross-border workers cross over from Spain to work in Gibraltar on a daily basis. Gibraltar uses the Gibraltar pound while Spain uses the euro, so currency conversion, remittance and tourism could be strong drivers for adopting a global, borderless currency.

To pay for a coffee in Gibraltar, customers can now scan a QR code or simply tap to pay using an NFC-enabled Bitcoin Lightning card. The most popular payment choice among Satoshi spenders is the Bolt Card, a CoinCorner innovation. Molly Spiers, head of marketing at CoinCorner told Cointelegraph that the “Bolt Card has been a driving factor for Bitcoin adoption.”

Bitcoin adoption in British Overseas Territories is booming, boosted by the ease of tap-and-go payments. Over on the Isle of Man, an island whose population doubles Gibraltar’s 35,000, Bitcoin adoption “has exploded over the last 6 months,” Spiers told Cointelegraph. “We've gone from around fi businesses accepting bitcoin, to now nearly 10x that!”

While the Isle of Man has made itself the mantle, “Bitcoin Island,” Walker quips that Gibraltar could be called “Bitcoin Rock.” Indeed, the household names of Costa Coffee and Hotel Chocolat join a growing list of merchants that accept Bitcoin in Gibraltar. Essardas Luxury, for example, has accepted Bitcoin since early 2021, while smaller independent shops accept Bitcoin and sometimes cryptocurrencies including stablecoins upon request.

Gibraltar rolls out new virtual asset regulation to combat market abuse

April 27, 2022 Coin Telegraph

Coin Telegraph

The document will require crypto companies to seek and prevent insider trading and market manipulation.

The British overseas territory of Gibraltar introduced a new regulatory package for distributed ledger technology (DLT) service providers. The document elaborates on the responsibilities of crypto businesses in regards to threats of market manipulation and insider trading.

On April 27, the government of Gibraltar published the 10th Regulatory Principle of the country's financial services regulation. The details are revealed in a Guidance Note, provided by the Gibraltar Financial Services Commission (GFSC), the chief finance regulator of the territory.

The regulation, crafted by a special working group that included both government officials and industry experts, sets operational guidelines for preventing market abuse. DLT providers are expected to monitor the movement of significant virtual asset holdings, publication of information that could be aimed at generating false or misleading market signals, and to investigate whether algorithmic-based systems are being used to generate deceptive data around transaction volumes.

The regulation also requires crypto companies to seek and prevent any insider trading activities and to inform the public of any relevant information “as soon as possible.” Proposed trading standards also include putting in place measures to reduce the liquidity providers and market makers' capacity to significantly alter asset prices.

Albert Isola, Gibraltar's Minister for Digital and Financial Services, expressed his confidence that the introduced measures will help the jurisdiction maintain its already strong relationship with the crypto sector. Isola commented to Cointelegraph:

"The introduction of the 10th Principle, with a significant input from industry, will develop further our regulatory framework. It provides permissioned firms with clear guidance on the standards that are required of them as well as providing consumer and jurisdictional protection."

One of the leaders of the working group, fintech lawyer Joey Garcia, commended Gibraltar's push to comply with FATF recommendations:

“It is great to see [...] Gibraltar lead in setting standards, particularly when the FATF has cited market integrity and prudential requirements as factors that jurisdictions should consider when developing regulatory requirements for the space.”

A home to the population of roughly 34,000 people, Gibraltar emerged as an attractive location for crypto in recent years. Following approval from the GFSC, crypto exchange Huobi had reportedly moved its spot trading operations to its Gibraltar-based affiliate.

Gibraltar Stock Exchange Receives Purchase Proposal by Blockchain Firm

January 1, 2022 Bitcoin.com

Valereum acquires Gibraltar-based Juno to expand on crypto-fiat bridge

December 31, 2021 Coin Telegraph

bitcoin regulation

The agreement is an essential step toward creating a fully regulated link between the fiat and crypto worlds, said Valereum.

Gibraltar-based tech group Valereum Blockchain announced the acquisition of Juno Group, a company that aids in the establishment and administration of trusts, money management and enterprise creation in Gibraltar.

Juno is a company that Valereum describes as having three areas of licensed operation: the management of trusts and similar entities, the administration of cash for a range of activities, including both fiat and cryptocurrency transactions and the incorporation and management of businesses in Gibraltar and other countries around the world.

The agreement is a step toward creating a fully regulated link between the fiat and crypto worlds, according to the press release, which complements Valereum's work with the Gibraltar Stock Exchange (GSX).

In October 2021, Valereum revealed its intention to acquire the Gibraltar Stock Exchange, a regulated exchange that has sought to distinguish itself by pursuing regulated digital assets.

The regulators of the peninsula are currently evaluating Valereum's bid to acquire the exchange in the new year, which could lead to the world's first integrated bourse where common bonds can be traded alongside major cryptocurrencies like Bitcoin (BTC) and Dogecoin (DOGE).

Following the acquisition of Juno, Valereum's board member Alan Gravett will assume the position of chair at Juno. Only the Gibraltar Financial Services Commission's approval is required for the transfer and change in control to be finalized.

Gibraltar has recently shown to be a more favorable regulatory environment for businesses in the cryptocurrency space. The Financial Services Commission of Gibraltar has recently permitted cryptocurrency enterprises looking to operate in the territory, including Huobi Group's local subsidiary Huobi Gibraltar, which offers spot trading services, and Block.one's branch Bullish Limited.

Crypto makes history in 2021: Five instances of governments embracing digital assets

December 29, 2021 Coin Telegraph

bitcoin regulation

While 2021 surely saw a few regulatory setbacks, some governments delivered masterclasses in forward-looking crypto regulation.

As digital asset prices had been hitting new historical highs in 2021, many jurisdictions were increasingly adopting cryptocurrencies like Bitcoin (BTC) and other crypto-based instruments.

In addition to Bitcoin crossing $68,000 for the first time since inception, the year of 2021 will be remembered for Bitcoin’s historical adoption as legal tender in El Salvador. The world’s first-ever Bitcoin exchange-traded fund (ETF) was also inaugurated in 2021, alongside many other benign regulatory developments around the world.

As we glance back at notable global regulatory moments in 2021, Cointelegraph has picked some of the most memorable instances of friendly crypto regulation.

1. El Salvador: The first country in the world to adopt Bitcoin as legal tender

The Republic of El Salvador, the smallest nation in Central America, officially adopted Bitcoin as legal tender on Sept. 7, 2021, becoming the world’s first country to do so. Bitcoin was trading at around $47,000 on the day of Bitcoin’s official adoption in the country.

El Salvador’s bold Bitcoin move took several months to materialize as president Nayib Bukele had first introduced the “Bitcoin Law,” laying the groundwork for BTC’s usage as an official payment method alongside the United States dollar in June 2021. The Salvadoran Legislative Assembly subsequently passed the law, which amassed a supermajority of 62 out of 84 votes.

Known as the “Land of Volcanoes,” El Salvador also moved to deploy its volcanic activity to generate new Bitcoin. In September, president Bukele teased a Bitcoin mining plant powered by volcanic geothermal energy in El Salvador, marking a major case for cutting BTC’s carbon footprint. Soon after, Bukele upped the stakes even further when he announced plans to establish an entire Bitcoin city, funded by BTC bonds.

While the crypto community celebrated El Salvador’s BTC drive, global financial authorities like the International Monetary Fund have expressed skepticism about the government’s move into crypto.

Some people in El Salvador were also unhappy with the Bitcoin Law, with some protesting against Bitcoin adoption due to concerns over its unstable price. Some of the protests even resulted in destroyed Bitcoin ATMs.

2. The United Arab Emirates: CZ’s new home

The UAE emerged as one the most crypto-friendly countries in 2021 as authorities in its capital city of Dubai have been ramping up the efforts to enable the crypto industry’s development.

In January, the Dubai Financial Services Authority (DFSA) announced plans to establish a comprehensive crypto regulatory framework as part of its 2021 business plan. The DFSA subsequently issued several regulatory approvals, including one for a major Canadian investment product, The Bitcoin Fund, in October. DFSA has also been working on regulations for investment vehicles like security and derivative tokens.

UAE regulators also came up with multiple arrangements to officially allow and support crypto trading in several free economic zones in Dubai. The nation has also been making strides in nonfungible tokens (NFT) adoption as its postal operator issued NFTs in November to commemorate the federation’s 50th National Day.

In late 2021, the Dubai World Trade Centre Authority said it will become a comprehensive zone and regulator of cryptocurrencies, products, operators and exchanges.

The UAE is becoming an attractive destination for some of the world’s largest cryptocurrency companies and industry figures. In October, Binance CEO Changpeng Zhao reportedly bought his first home in the “very pro-crypto” Dubai. The Chinese-Canadian business executive had previously claimed that he did not own any real estate as of April 2021.

pic.twitter.com/QrgxaHKAp9
— CZ Binance (@cz_binance) December 21, 2021

3. Canada: Crushing the global Bitcoin ETF race

Canada has earned a place on the list of 2021’s most crypto-friendly countries the moment its main securities regulator cleared the takeoff of the world’s first physically-settled Bitcoin ETF at the beginning of the year.

Launched by Canadian investment firm Purpose Investments in mid-February, the Purpose Bitcoin ETF saw an explosive debut with $564 million in assets under management in just five days after starting trading.

Canada continued leading the global Bitcoin ETF race as Fidelity Canada launched its Fidelity Advantage Bitcoin ETF and the eponymous mutual Bitcoin ETF fund in December.

Canada’s Bitcoin ETFs aren’t just available for retail investors but also provide significant benefits for those who open government-registered investment accounts, such as the Tax-Free Savings Accounts.

On top of crypto ETF dominance, Canada has been working to introduce more clarity to its crypto regulations in recent years, officially recognizing crypto firms as money service businesses in 2020. In late 2021, Canada’s Financial Transactions and Reports Analysis Centre of Canada issued registration for Binance’s local subsidiary, Binance Canada Capital Market.

Canada is ranked the fourth largest country in terms of Bitcoin mining power, accounting for 9.6% of the total global hash rate, according to data from the Cambridge Bitcoin Electricity Consumption Index.

4. Singapore: Crypto is ‘investment in a prospective future,’ says regulator

Singapore continued to be one of the world’s biggest hubs for cryptocurrency exchanges and blockchain enterprises in 2021 as the country’s regulators have done a great deal to nurture the industry.

In November, Singapore welcomed two new institutional-grade Bitcoin funds launched by Fintonia Group, a company regulated by the Monetary Authority of Singapore (MAS). Previously, MAS officially allowed companies like the Australian crypto exchange Independent Reserve and DBS Bank’s brokerage arm, DBS Vickers, to provide digital payment token services in the country.

DBS Bank, Singapore’s largest retail and commercial bank, is one of the largest local companies to make a foray into the crypto industry in the past year. The firm posted tenfold crypto volume growth in Q1 2021 after launching its crypto trading platform, DBS Digital Exchange, in late 2020.

Some companies with close ties to the government of Singapore are reportedly big fans of cryptocurrencies like Bitcoin. Robert Gutmann, CEO of New York Digital Investment Group, claimed in March that Singaporean government-backed holding company Temasek is a major Bitcoin investor.

Singapore is also among the world’s top nations in terms of retail crypto adoption as 43% of Singaporeans own crypto, according to one survey.

Despite local authorities welcoming the crypto industry development, a large number of crypto businesses have apparently failed to receive licenses to operate in Singapore in 2021.

5. Gibraltar: New target for Huobi exchange after Chinese crackdown

Gibraltar, a British Overseas Territory and one of the smallest countries in the world, has been emerging as an attractive location for crypto in 2021.

In November, Gibraltar welcomed Bullish, a new cryptocurrency exchange launched by the EOS.IO protocol developer, Block.one. The company’s local branch previously obtained a distributed ledger technology license from the Gibraltar Financial Services Commission (GFSC).

In September, the GFSC also approved operations of Zubr Exchange Limited, a new local crypto exchange business launched by Sam Bankman-Fried’s crypto giant FTX.

The government of Gibraltar has been strengthening its ties with global blockchain and crypto industry players. In March, Gibraltar’s minister for digital and financial services, Albert Isola, became an ambassador for the Global Blockchain Business Council, a major industry association.

Some of the world’s biggest crypto exchanges entered Gibraltar in 2021 amid growing support from regulators.

Following approval from the GFSC, crypto exchange Huobi has reportedly been moving its spot trading operations to its Gibraltar-based affiliate following China’s cryptocurrency crackdown. According to the firm, Chinese operations made up at least 30% of its total trading volumes and revenues before the ban.

Crypto-friendly jurisdictions of 2021: Honorable mentions

El Salvador, the UAE, Canada, Singapore and Gibraltar are, of course, not the only countries that served examples of benign crypto regulation in 2021.

Among other increasingly crypto-friendly jurisdictions is Australia, which has been actively moving to adopt new crypto regulations and became a major location for crypto-related ETF listings this year.

Liechtenstein, the world’s richest nation per capita, was the country with the most comprehensive cryptocurrency tax policy for the second year in a row in 2021, as per a PwC report. Australia and Malta ranked second, followed by Germany.

Gibraltar