Updated: Apr 29, 2020
The security of a bitcoin bunker vault offers a lot of asset protection. However, it comes at the expense of immediate access to secured funds. Given the time it takes to go through the protracted Xapo authentication protocol and complex security process, Xapo clients may have to wait up to 48 hours to transfer cryptocurrency to a client Xapo wallet.
Bitcoin bunker companies like Xapo, as vault services custodians, come under regulatory review. Xapo is a Delaware-based company registered with FinCEN, the U.S. Treasury Department’s Financial Crimes Enforcement Network. FinCEN collects and analyzes data about financial transactions to fight against financial crimes, domestic and international terrorist financing, and money laundering. Since at least one of Xapo’s distributed bunkers is in Switzerland, the company must abide by the Financial Services Standards Association (FSSA) anti-money laundering (AML) rules. Xapo, therefore, must obey all essential compliance regulations.
Another bitcoin bunker provider is Vo1t, a global custodian of blockchain assets. Based in London, Vo1t positions itself against Xapo by offering secured cold storage, same-day access to cryptocurrency assets, and industry-leading compliant systems. Vo1t’s military-grade, guarded by former military personnel, underground vaults are stored in an abandoned nuclear bunker somewhere in Southern England. Vo1t’s team includes professionals who have served with the U.K. Ministry of Defense, Goldman Sachs, and the Financial Conduct Authority (FCA).