Phoenix and Wasabi exit US market amid self-custody wallet crackdown

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Phoenix Wallet and Wasabi Wallet will cease services for U.S. customers due to concerns about increased regulatory crackdowns in the nation.

Recent regulatory action against Consensys and Samourai has instilled fear among other crypto service providers operating in the United States.

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. “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

ACINQ explained that Phoenix Wallet users should drain their wallets, but avoid “force-closing” their wallets, as “on-chain fees could be significant.”Wallet providers remain divided on BRC-20 integration despite popularity

 

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