What Xapo & the rest of these SW2X companies are trying to do is sell an knock-off of Bitcoin to the uninformed, as if it were Bitcoin.

Like when fraudsters attempt to pass off cheaper/unclean horsemeat as "ground beef".

Or "Tommy Hillfinger" branded goods on a market stall.

In the UK this would have been dealt with under:

"The Trade Descriptions Act 1968 is an Act of the Parliament of the United Kingdom which prevents manufacturers, retailers or service industry providers from misleading consumers as to what they are spending their money on. This law empowers the judiciary to punish companies or individuals who make false claims about the products or services that they sell. Applying a false trade description to goods is a strict liability offence: provided it is shown that the description was applied and was false, the accused has to prove certain defences in order to escape conviction. False descriptions as to services require the more normal proof of mens rea (guilty intent)." (this is still evolving in regards to EU law).

Most sane countries have similar anti-fraud protections in place. (how forcefully they are enforced is another matter)

TLDR: this is a blatant scam!