Xapo Bank, a crypto-friendly bank based in Gibraltar, has announced its expansion into the large market of India and the rest of South Asia due to significant growth opportunities for cryptocurrency services in the region.
On Thursday, the bank revealed that it has started offering its full banking and crypto services to Indian clients. Xapo Bank’s strong interest rates on deposits make it an attractive choice for clients in India.
It gives attractive returns with an annual interest rate of 1.00% on Bitcoin and 4.10% on USD deposits. Interestingly, interest payments on Bitcoin deposits are paid daily in Satoshis, the smallest unit of BTC.
Moreover, besides the banking services, Xapo provides immediate stablecoin-to-fiat exchanges and crypto-to-fiat conversions and facilitates British pound or euro transfers.
CEO of Xapo Bank, Seamus Rocca, stated:
“This is in line with the positive shifts we are witnessing in Asia’s evolving crypto landscape, as well as our mission to make transacting transparently and securely from anywhere in the world.”
India has more than 1.3 billion people, and Xapo Bank sees it as an excellent chance for success. The bank received support from leading investors such as DST Global, SoftBank, and Rabbit Capital, further adding to the confidence to enter the broader market.
This decision aligns with the remarkable growth observed in the Indian market. The country witnessed a massive influx of foreign investments, totaling $15.5 billion, during the Q1 of 2023.
Xapo Is Facing Challenges Due To Crypto Regulations
Xapo Bank is facing troubles as it expands its services in India. For instance, the United Kingdom (UK) has implemented strict regulations regarding crypto. These include imposing a 30% tax on all crypto revenues and the elimination of deductibility for losses. Therefore, regulations can affect the Bank’s profitability and operations in the Indian market.
The bank sees great potential in India’s economic growth and has considered the need for financial services that should be easy to use and accessible to all.
India’s economy grew by 6.1%, marking substantial growth from January to March 2023. Meanwhile, China grew by 2.2%. China is world’s the second-largest economy.
In 2023, Xapo emerged as one of the prominent banks in the crypto industry. Despite the global banking crisis since 2008, the bank has expanded its operations and introduced new ways of integration.