US Regulations Prompt Phoenix and Wasabi Wallets to Halt Services
Acinq's Phoenix Wallet and zkSNACKs' Wasabi Wallet have halted services for customers in the United States, following regulatory actions against major self-custodial cryptocurrency wallet providers.
Concerns have been raised about the legitimacy of self-custodial wallet providers as money service businesses in light of recent regulatory moves targeting Consensys, creator of Metamask, and Samourai Wallet.
“In response to recent U.S. regulatory actions, zkSNACKs has banned U.S. users from its services,” stated zkSNACKs in an April 27 announcement. Acinq similarly expressed doubts about the regulatory classification of self-custodial wallet providers and Lightning service providers in an April 26 post on X.
Phoenix Wallet users have until May 2 to make adjustments, while Wasabi Wallet’s new policy took immediate effect. Acinq advised Phoenix Wallet users to empty their wallets without force-closing them to avoid significant on-chain fees.
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Regulators globally have raised concerns that self-custody crypto wallets could facilitate illicit activities like money laundering. Consensys received a Wells notice from the SEC in April regarding potential enforcement actions against its MetaMask products, while the co-founders of Samourai Wallet were arrested on money laundering charges by the U.S. Justice Department in late April.
In contrast, European regulators have eased proposed regulations on self-custody wallets, scrapping a proposed 1,000 euro limit on crypto payments in new anti-money laundering laws. However, crypto exchanges are still required to conduct due diligence, including identity verification checks, for transactions exceeding 1,000 euros.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
