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NewsBitcoin Wallet Phoenix and Wasabi Exit US Market

Bitcoin Wallet Phoenix and Wasabi Exit US Market

Apr 29,2024,02:32

Reported by Cointelegraph, Acinq’s Bitcoin wallet, Phoenix Wallet, and zkSNACKs’ Wasabi Wallet are both discontinuing services for United States customers in response to the recent crackdown on two major self-custodial cryptocurrency wallet providers.

Both Acinq and zkSNACKs raised concerns about whether self-custodial wallet providers can be seen as legitimate money service businesses following the recent action taken by the U.S. regulatory agencies against Metamask creator Consensys and crypto mixer Samourai Wallet.

“In light of recent announcements by U.S. authorities, zkSNACKs is now strictly prohibiting U.S. users from using its services,” zkSNACKs wrote in an April 27 statement.

“Recent announcements from US authorities cast a doubt on whether self-custodial wallet providers, Lightning service providers, or even Lightning nodes could be considered Money Services Businesses and be regulated as such,” Acinq explained in an April 26 post on X.

Acinq has given Phoenix Wallet users until May 2 to adjust to the upcoming changes, while the new policy at Wasabi Wallet was implemented “effective immediately.”

Acinq explained that Phoenix Wallet users should drain their wallets but avoid “force-closing” their wallets, as “on-chain fees could be significant.”

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