Joey Garcia, the Director and Head of Regulatory Affairs and Public Relations at Xapo Bank, has been a key player in the evolution of cryptocurrency regulation. His journey started in 2014 when he collaborated with Wences Casares to establish a regulatory framework for cryptocurrencies in Gibraltar. Despite facing initial skepticism and resistance, Garcia’s persistence led to the development of a comprehensive regulatory framework that put Gibraltar on the map as a leader in digital asset regulation.
One of the key aspects of Garcia’s work at Xapo Bank has been the emphasis on creating a prudential regime that goes beyond basic compliance. By staying ahead of the Financial Action Task Force’s (FATF) recommendations, Gibraltar was able to position itself as a frontrunner in the regulatory space. This forward-thinking approach not only attracted major players in the digital assets industry but also paved the way for a more secure and compliant environment for crypto transactions.
Garcia highlighted Xapo Bank’s transition from being the largest Bitcoin wallet provider to a fully licensed bank. The decision to obtain a full bank license was driven by the desire to offer more secure and reliable financial services to customers. Xapo’s commitment to security is reflected in its high liquidity ratio and fully collateralized customer assets. Garcia pointed out that Xapo maintains a liquidity coverage of 100%, demonstrating the bank’s solid financial position.
Garcia’s role extends beyond Xapo Bank as he provides consultancy services to regulatory authorities worldwide. Through his work with the United Nations, he conducts training and assessments to help countries address their unique regulatory challenges. His experience in countries like Singapore, Cambodia, and Thailand has given him a deep understanding of the global regulatory landscape. By advocating for a pragmatic and informed approach to regulation, Garcia aims to bridge the gap between global standards and local realities.
Looking ahead, Garcia envisions a future where regulatory frameworks continue to evolve in response to the dynamic nature of the crypto industry. He believes that trust and reliability will play a crucial role in the adoption of crypto services. As the industry matures, reputation and credibility will become defining factors for success. Xapo Bank aims to be a secure pillar in the financial ecosystem, offering unique services that blend traditional finance with digital assets. By providing secure access to US dollar accounts and Bitcoin, Xapo Bank strives to protect and grow customers’ wealth in a way unmatched by traditional banks.
Joey Garcia’s insights shed light on the challenges and opportunities in the world of cryptocurrency regulation. His proactive and informed approach to shaping the future of digital finance has set new standards in compliance and security. As the crypto industry continues to evolve, regulatory frameworks will play a critical role in ensuring the trust and reliability of financial services. Garcia’s work with Xapo Bank and various regulatory authorities serves as a testament to the importance of collaboration and innovation in driving the industry forward.