- Acinq’s Phoenix Wallet and zkSNACKs’ Wasabi Wallet are ceasing operations for U.S. customers due to regulatory pressures.
- Both companies expressed concerns about classification as Money Services Businesses after U.S. actions against other crypto entities.
- Users are advised to transfer their assets as new policies take immediate effect.
Acinq and zkSNACKs, the entities behind Phoenix Wallet and Wasabi Wallet respectively, have announced the discontinuation of their services for customers in the United States. This decision stems from ongoing regulatory developments that have cast doubt on the legal standing of self-custodial wallets in the country.
Regulatory Challenges Lead to Strategic Withdrawal
Recent actions by U.S. regulatory bodies have intensified scrutiny on cryptocurrency wallet providers, influencing Acinq and zkSNACKs to reevaluate their operations within the U.S. market. The companies’ concerns were triggered by regulatory measures against other cryptocurrency entities like Consensys and Samourai Wallet, which have faced allegations of operating without proper registrations.
Acinq, in a statement released on April 26, highlighted the uncertainty about whether services like theirs could be classified as Money Services Businesses under U.S. law. Consequently, they have set a deadline of May 2 for Phoenix Wallet users to adapt to these changes, advising them to transfer their funds without force-closing their accounts to avoid potentially high on-chain fees.
Immediate Effects and User Guidance
zkSNACKs also responded swiftly, implementing an immediate ban on U.S. users from accessing its services as of their April 27 announcement. This proactive measure reflects the company’s urgency in complying with potential legal requirements and mitigating risks associated with the undefined regulatory environment.
The announcements from both companies underscore a broader industry trend where regulatory pressures are reshaping how cryptocurrency businesses operate globally. While U.S. authorities continue to tighten oversight, European regulators appear to be taking a more measured approach, recently easing some proposed restrictions on self-custody crypto wallets.
