Phoenix and Wasabi Wallet Discontinue Services for US Customers 👛
Phoenix Wallet and Wasabi Wallet are stopping their services for United States (US) customers. Both companies cited concerns about the legitimacy of self-custody wallet providers as money services businesses. This move follows recent regulatory actions taken against ConsenSys, the parent company of MetaMask, and the Bitcoin mixer Samourai Wallet.
ACINQ’s Concerns and Actions 🚫
The developer of Phoenix, ACINQ, expressed concerns last Friday about recent regulatory actions by US authorities. These actions have cast doubt on whether providers of self-custody wallets, Bitcoin Lightning Network service providers, or Lightning nodes could be classified as money services businesses, subjecting them to regulation. ACINQ announced the removal of Phoenix Wallet from US application stores, scheduled for May 3.
- Last Friday, ACINQ announced concerns about US regulatory actions
- Doubts arose about self-custody wallets being classified as money services businesses
- Phoenix Wallet removal from US application stores scheduled for May 3
zkSNACKs Blocks US Users 🚧
Following ACINQ’s actions, zkSNACKs blocked all US residents and citizens from using their services on Saturday. The company strictly prohibited US users from accessing their websites or using Wasabi Wallet services, ultimately implementing an IP address ban for US residents.
- zkSNACKs blocked US users from accessing their services
- IP address blocking for US residents on Wasabi Wallet websites
- US citizens and residents not allowed to use Wasabi Wallet features
Regulatory Crackdown on Self-Custody Wallets 🛡️
In the wake of recent events, US regulators have been targeting self-custody wallets due to concerns about potential involvement in illicit activities, such as money laundering. The arrest of Samourai Wallet’s founders and the lawsuit filed by ConsenSys against the SEC have intensified the regulatory scrutiny.
- US authorities arrested Samourai Wallet’s founders for money laundering allegations
- Samourai Wallet app no longer available for download in the US
- ConsenSys filed a lawsuit against the SEC regarding Ethereum regulations
Controversy Surrounding Ethereum Regulation 📜
The SEC’s recent actions against Ethereum, including ConsenSys’s lawsuit, have sparked controversy within the crypto community. ConsenSys argues that Ethereum does not meet traditional security criteria and accuses the SEC of overreaching its authority through inconsistent enforcement.
- SEC’s stance against Ethereum raises concerns in the crypto community
- ConsenSys challenges the SEC’s classification of Ethereum as a security
- Accusations of ad hoc enforcement without clear guidelines from the SEC
Hot Take 🔥
The Future of Self-Custody Wallets in the US 🇺🇸
In conclusion, the recent crackdown on self-custody wallets by US regulators has sent shockwaves through the crypto industry. The actions taken against Phoenix and Wasabi Wallet, coupled with the arrests and lawsuits involving prominent wallet providers, highlight the increasing challenges faced by decentralized service providers in the country. As the regulatory landscape continues to evolve, it remains to be seen how these developments will impact the use and adoption of self-custody wallets in the US.
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