Phoenix Wallet To Discontinue US Services Amid Regulatory Challenges
Phoenix Wallet is set to remove its services from US application stores following regulatory issues surrounding self-custodial wallets. ACINQ, the company behind Phoenix Wallet, expressed dissatisfaction with US regulations regarding money services businesses, which prompted their decision to cease operations in the US.
ACINQ’s Stand Against Regulatory Discrimination
In response to recent warnings from the US Federal Bureau of Investigation, ACINQ raised concerns about the exclusion of self-custodial wallet providers, Lightning service providers, and Lightning nodes from the definition of money services businesses. This exclusion raised questions about the regulation of such entities under US law, prompting ACINQ to take action.
- ACINQ expressed disappointment with the lack of clarity in US regulations regarding self-custodial wallet providers and related services.
- The company highlighted the need for a more inclusive regulatory framework that addresses the concerns of emerging technologies like Lightning Network.
- ACINQ’s decision to pull Phoenix Wallet from US app stores reflects their commitment to upholding their principles and advocating for fair treatment under the law.
Phoenix Wallet Removal and User Instructions
ACINQ announced that Phoenix Wallet will no longer be available for download in US application stores starting May 3, 2024. Users in the US are advised to empty their wallets and follow specific instructions provided by Phoenix Wallet:
- Users should navigate to the ‘Settings’ section and select ‘Close Channels’ on Android devices or ‘Drain Wallet’ on iOS devices to empty their wallets.
- For a seamless transition, users are cautioned against force-closing channels to avoid unnecessary fees.
Industry Response to Regulatory Challenges📉
ACINQ’s decision to discontinue Phoenix Wallet in the US is not an isolated incident. Other crypto companies, such as zkSNACKs, have also taken similar steps to restrict access to their services for US citizens. This collective response reflects growing concerns within the industry about regulatory uncertainty and potential risks for businesses operating in the US.
- Wasabi crypto wallet, operated by zkSNACKs, has joined Phoenix Wallet in banning US users from accessing its products and services.
- The actions of these companies highlight the impact of regulatory developments on the crypto industry and the need for clear guidelines to foster innovation and compliance.
Market Performance Amid Regulatory Uncertainty💹
The cryptocurrency market has shown resilience despite regulatory challenges, with a 2.70% increase in overall market cap to $2.38 trillion. Leading tokens like Ethereum and Solana have experienced significant gains, with Bitcoin also recording a modest rise in value:
- Ethereum (ETH) and Solana (SOL) lead the market with daily gains of 6.20% and 5.34% respectively.
- Bitcoin, the flagship cryptocurrency, now trades at $63,855, reflecting a 1.46% increase in value.
Outlook for the Crypto Industry in the US🇺🇸
The voluntary exits of Phoenix Wallet and other crypto companies from the US raise concerns about the country’s regulatory environment and its impact on innovation and investment in the industry. As regulatory scrutiny intensifies, stakeholders are urging lawmakers to provide clear guidance and support for crypto businesses to thrive in a competitive global market.
Hot Take: Navigating Regulatory Challenges in the Crypto Space🔥
As the crypto industry grapples with evolving regulatory landscape, companies like ACINQ and zkSNACKs are taking proactive steps to safeguard their interests and uphold regulatory compliance. The decisions to discontinue services in the US underscore the need for a constructive dialogue between regulators, businesses, and stakeholders to create a conducive environment for innovation and growth in the crypto space.
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