Wallet of Satoshi, a popular wallet for use with Bitcoin’s Lightning Network, announced the end of US support on May 23 November 24.
The company said it had decided to remove its app from the US and Google app stores and would not serve US users in the future.
The announcement only broadly described the reasons for the change, stating:
“This decision does not come lightly. Our commitment to providing a secure, easy-to-use and compatible platform worldwide is unwavering. Our top priority is the safety and interests of our customers and our company.”
Wallet of Satoshi further said it hopes to eventually resume U.S. operations in the future. It added that US users will continue to have access to the funds currently in their wallets, allowing for transactions and withdrawals.
Regulatory risks may be grounds for removal
Many members of the crypto community have speculated that, due to the US-specific policy change, the decision is a response to US regulations.
Wallet of Satoshi is a custodial wallet, meaning the provider centrally stores and manages funds on behalf of wallet customers. The Official Bitcoin Wallet and several other Lightning wallets, on the other hand, are non-custodial wallets, meaning they allow users to maintain full control over their on-chain cryptocurrency balance.
Wallet of Satoshi’s centralized and custodial model likely puts the company at risk from regulatory enforcement, similar to cryptocurrency exchanges that manage funds on behalf of their users. Many such exchanges have recently faced regulatory action.
Before the announcement, some community members speculated that Google and Apple had banned Wallet from their respective app stores. However, Wallet of Satoshi’s latest update, combined with the fact that the app is available in international versions of every app store, suggests that the stores have not imposed a ban.
Another commentator, Kevin Rooke, noted that the app recently saw high volumes, processing more than 1.1 million Lightning transactions in November.