Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Bitcoin services provider Xapo has confirmed that it will no longer operate in the state of North Carolina.

The company, which recently moved its headquarters to Switzerland, cited state-level regulation as the decisive factor behind its decision. Earlier today, one North Carolina customer posted a message on Reddit stating that they had received a 30-day closure notice.

Speaking to CoinDesk, Wences Casares, founder of Xapo, said:

"It is correct that we are not operating in North Carolina. We do not have a money transmitter license in that state and we think the effort to comply with their upcoming bitcoin bills is not justified by the number of customers we have there."

As previously reported, an effort to regulate digital currency activity under the state's money transmission laws advanced in the North Carolina Senate earlier this week.

Casares declined to comment on the ongoing lawsuit with LifeLock.

Mounting regulation concerns

Xapo is not the first company to cease operations in a part of the United States amidst the development of regulation perceived to be onerous and potentially damaging to digital currency focused companies.

In June, San Francisco-based Coinbase announced that it was shutting down operations in the state of Wyoming until further notice, citing actions taken by the Wyoming Division of Banking.

ShapeShift recently revealed plans to stop serving the New York market following the official launch of the BitLicense digital currency regulatory framework, which came into effect last month.

North Carolina map image via Shutterstock. 


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.