Phoenix Wallet, a Bitcoin wallet provider for Lightning Network payments, has announced its imminent removal from US app stores. The development comes as the wallet’s founding company, ACINQ, criticizes the regulation of self-custodial wallets in the United States.
Phoenix Wallet ends US services due to regulatory discrimination
On April 26, ACINQ, developers of Phoenix Wallet, Express disappointment with the non-inclusion of self-custodial wallet providers, Lightning service providers and Lightning nodes as money services businesses. ACINQ’s statement draws on a recent announcement from the US Federal Bureau of Investigation, which warned users against unregistered crypto money transfer activity.
Recent announcements from US authorities cast doubt on whether self-custodial wallet providers, Lightning service providers or even Lightning nodes could be considered money services businesses and regulated as such.
–ACINQ (@aquin_co) April 26, 2024
US authorities have specifically highlighted self-custodial wallets, which do not require any know-your-customer procedures, as the main type of these money transfer services. Following the initial message, the ACIQN has now announcement the removal of the Phoenix Wallet app from all US app stores on May 3, 2024.
In preparation for. Phoenix Wallet advised US-based users to empty their wallets. They also advised not to “force-shut down” channels to avoid significant on-chain fees. Thanks to a MessagePhoenix has released specific instructions for users: They should empty their wallet by going to “Settings” and selecting “Close Channels” on Android devices or “Empty Wallet” on iOS devices.
Alongside the ACIQN, zkSNACKs also banned US citizens to access its Wasabi crypto wallet and all associated products and services. Although the crypto company did not give a specific reason for such action, it highlighted “recent announcements from US authorities” as a contributing factor to their decision.
However, it remains to be seen whether these recent voluntary exits could trigger a mass exodus of crypto companies from the United States, which is continually criticized for the lack of a clear regulatory framework for the nascent industry.
With the Securities and Exchange Commission’s (SEC) continued crackdown on crypto exchanges and the Department of Justice now I’m attacking the developers Due to the misuse of their platforms by sanctioned entities, crypto enthusiasts can only call for immediate legislative intervention from the US Congress.
Crypto Market Overview
Furthermore, the cryptocurrency market performed well over the past day, gaining 2.70% to reach a market cap of $2.38 trillion. Notably, Ethereum (ETH) and Solana (SOL) lead the way among the top 10 largest tokens, with daily gains of 6.20% and 5.34%, respectively. Meanwhile, Bitcoin, which is considered the world’s most valuable digital asset, is now trading at $63,855, having also increased by 1.46% during the same period.
Total crypto market cap valued at $2.314 trillion | Source: TOTAL chart on Tradingview.com
Featured image of Finys, chart by Tradingview
