The creators of Bitcoin wallets Phoenix Wallet and Wasabi Wallet have made the decision to cease their services for customers in the United States. In an official statement, zkSNACKs, the maker of Wasabi Wallet, announced that they will be blocking US citizens and residents from accessing their websites, downloading their wallet, and utilizing their related products and services, including API and RPC interfaces. They clarified that IP addresses from US residents will be blocked on wasabiwallet.io, api.wasabiwallet.io, and zksnacks.com. Similarly, Phoenix Wallet revealed that their app will be removed from US app stores by May 3rd, and advised US-based users to withdraw their funds. They provided instructions on how to empty the wallet and cautioned against force-closing channels due to potential high on-chain fees. The decision by Phoenix Wallet and Wasabi Wallet to exit the US market comes in response to recent enforcement actions involving two self-custody cryptocurrency wallets. Last week, the founders of Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, were arrested for allegedly running an unlicensed money-transmitting business. Additionally, the US Securities and Exchange Commission (SEC) sent a Wells Notice to Consensys, the creators of MetaMask, indicating an impending enforcement action against the company. ACINQ, the company behind Phoenix Wallet, expressed concerns over the regulatory challenges faced by self-custody crypto wallet providers in the US. They stated that recent announcements from US authorities have raised doubts about whether self-custodial wallet providers, Lightning service providers, or Lightning nodes could be considered Money Services Businesses and subjected to regulation. It is important to note that the opinions expressed in this article are not investment advice, and investors should conduct their own research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. The article also advises readers to be cautious with transfers and trades, as any losses incurred are the responsibility of the individual. The Daily Hodl does not endorse the buying or selling of cryptocurrencies or digital assets, and is not an investment advisor.
