Pro-crypto regulation draws Binance and big players

by · August 2, 2022

Gibraltar’s 6.8 km2 territory is home to 35,000 people and several large international crypto companies. The British overseas territory of Gibraltar, governed by the United Kingdom and a major gateway to Europe, is an attractive jurisdiction for distributed ledger technology (DLT) or simply crypto.

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

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

“Binance will establish several regional offices. France and Dubai will be our offices in Europe and the Middle East, 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 UK overseas territory.

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

Joey García, 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 technology:

“Small jurisdictions can move faster. We’ve seen that time and time again [in Gibraltar], whether it is crowdfunding or new areas of development. Xapo, for example, received its e-money license in Gibraltar in 2017.”

Xapo Bank CEO Wences Casares is known as “patient zero” in the Bitcoin (BTC) world. The Argentinian businessman has reportedly advocated for Bitcoin among tech leaders in Silicon Valley. Quartz reported that Casares tried to blackmail Bill Gates, while Bloomberg reported that Xapo kept over $10 billion of Bitcoin in its vaults.

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 is a tension and juxtaposition between the old banking and the new crypto landscape; to be the bridge between old and new.” Commenting on Gibraltar as a jurisdiction, she explained:

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

When it comes to regulation, Minister Isola also chimed in. He explained that “the regulation must be an enabler, a business, not a stop. So, in my view, pragmatic and practical regulation helps business.”

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

“In today’s world, people should be able to move quickly and easily between currencies with almost zero fees, and the lightning network can make that possible, whether that’s potentially for border workers in Gibraltar or for visitors coming to Gibraltar to spend their money. And in our stores.”

Obi Nwosu, CEO of Fedi and 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 that people on the ground are trying Bitcoin; that merchants on the ground are more interested in accepting Bitcoin.”

Molly Spiers, head of marketing at CoinCorner, explained that Bitcoin adoption in UK 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 such as Costa Coffee, Hotel Chocolat and Card Factory – and we have around 20 more potentially interested.”

Related: Huobi gets green light as exchange provider in Australia

As for Minister Isola, when asked if Gibraltar should emulate some of the Isle of Man’s success with Bitcoin adoption, he explained: “I’ve always said that if someone has a chip in their legislation that’s better than ours, I would don’t hesitate to adopt it. At the end of the day, we’re looking for the most effective, enabling, innovative regulatory framework we can find.”

As a result, not only can crypto operators meet, network and rub shoulders with regulators on the small spot, but the territory reacts quickly to market movements.