Discontinuation of Services for US Customers by Phoenix and Wasabi Wallets
Greetings to all cryptocurrency enthusiasts! Today, we bring you some concerning news as two popular self-custodial cryptocurrency wallet providers have made the decision to discontinue their services for customers in the United States. ACINQ’s Phoenix Wallet and zkSNACKs’ Wasabi Wallet have taken this drastic step in response to recent regulatory crackdowns on self-custodial wallet providers by regulatory agencies.
Concerns Over Regulatory Developments
Both ACINQ and zkSNACKs have expressed grave concerns over the recent actions taken against Consensys, the creator of MetaMask, and crypto mixer Samourai Wallet. The classification of self-custodial wallet providers as legitimate money service businesses has been a major point of contention, leading to these companies questioning their status in the eyes of regulators.
- ACINQ and zkSNACKs discontinue services for US customers
- Response to recent regulatory crackdown on self-custodial wallet providers
- Concerns over classification as money service businesses
zkSNACKs Restriction on US Users
In an official statement on April 27, zkSNACKs announced its decision to block US users from accessing its services due to recent announcements by US authorities. Similarly, ACINQ cited recent regulatory developments as the reason for casting doubts on the status of self-custodial wallet providers, Lightning service providers, and Lightning nodes as Money Services Businesses.
ACINQ’s Advisory to Phoenix Wallet Users
ACINQ has set a deadline of May 2 for Phoenix Wallet users to make the necessary adjustments to accommodate the upcoming changes. On the other hand, Wasabi Wallet’s new policy has been implemented with immediate effect, leaving users with no time to waste. ACINQ has advised Phoenix Wallet users to transfer their funds without force-closing their wallets to avoid incurring significant on-chain fees.
- zkSNACKs bans US users from accessing its services
- ACINQ sets deadline for Phoenix Wallet users to adjust
- Advisory to avoid force-closing wallets
Legal Troubles for Samourai Wallet Co-Founders
In a separate incident, the co-founders of Samourai Wallet, a prominent cryptocurrency mixer, have been arrested on charges of money laundering brought by the US Justice Department and other agencies. CEO Keonne Rodriguez and CTO William Hill face allegations of conspiracy to commit money laundering and operating an unlicensed money transmitting business, signaling the government’s crackdown on such services.
- Arrest of Samourai Wallet co-founders on money laundering charges
- Crackdown on crypto-mixing services by US authorities
- Founder of Bitcoin Fog convicted of money laundering
Hot Take: Regulatory Landscape Comparison
In light of recent events, it is evident that the regulatory landscape for cryptocurrency businesses varies significantly between the United States and Europe. While the US authorities have been actively pursuing enforcement actions against self-custodial wallet providers and crypto mixers, European regulators have taken a slightly different approach. The contrasting approaches highlight the challenges faced by businesses operating in the crypto space under different regulatory frameworks.
Sources:
1. zkSNACKs Official Statement
2. Twitter: ACINQ announcement
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