The developers of Bitcoin (BTC) wallets Phoenix Wallet and Wasabi Wallet have announced that they will stop providing services to US consumers.
In a statement, Wasabi Wallet maker zkSNACKs say It now blocks US citizens and residents from visiting its websites, downloading its wallet, and using related products and services, such as API (application programming interface) and RPC (remote procedure call) interfaces.
“An IP address block for US residents is effective on wasabiwallet.io, api.wasabiwallet.io and zksnacks.com…
If you are a citizen of the United States or a resident of the United States, you may not visit the above-mentioned sites, download Wasabi Wallet, or use Wasabi Wallet’s Coinjoin feature.
Meanwhile, Phoenix Wallet say The app will no longer be available in US app stores from May 3, telling US users to withdraw their funds.
“US users should empty their wallets:
– Settings > Close channels (Android)
– Settings > Empty Wallet (iOS)
We strongly recommend *not forcibly closing* channels as the costs to the chain can be significant.”
Phoenix Wallet and Wasabi Wallet are exiting the US market following recent enforcement actions involving two self-custodial cryptocurrency wallets.
Last week, authorities arrested Keonne Rodriguez and William Lonergan Hill, co-founders of Samourai Wallet, for allegedly operating an unlicensed money transmission business.
Earlier this month, the US Securities and Exchange Commission (SEC) also sent Consensys, the makers of MetaMask, a Wells Notice indicating an upcoming enforcement action against the company.
ACINQ, the company behind Phoenix Wallet, say Self-service crypto wallet providers are facing regulatory challenges in the US.
“Recent announcements from US authorities cast doubt on whether self-custodial wallet providers, Lightning service providers or even Lightning nodes can be considered money services businesses and regulated as such.”
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Generated image: Midjourney