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Several crypto service providers in the United States are feeling apprehensive following the recent regulatory action taken against Consensys and Samourai.
Acinq’s Bitcoin wallet, Phoenix Wallet, and zkSNACKs’ Wasabi Wallet have decided to discontinue their services for customers based in the United States because of the recent crackdown on two major self-custodial cryptocurrency wallet providers.
Acinq And zkSNACKs Raised Concerns
Acinq and zkSNACKs have raised concerns about the legitimacy of self-custodial wallet providers as legitimate money service businesses, especially after the action taken by the U.S. regulatory agencies against Consensys and Samourai Wallet. “zkSNACKs is now strictly prohibiting U.S. users from using its services,” the company wrote in a statement on April 27.
Acinq stated on April 26 that recent statements made by US authorities raise concerns about the possibility of self-custodial wallet providers, Lightning service providers, and even Lightning nodes being classified as Money Services Businesses and subjected to regulation.
Acinq’s Deadlines Are Set
Acinq has set a deadline of May 2 for Phoenix Wallet users to adjust to the upcoming changes, while the new policy at Wasabi Wallet was implemented “effective immediately. Acinq advised Phoenix Wallet users to drain their wallets without “force-closing” their wallets to avoid significant on-chain fees The regulators worldwide have recently argued that self-custody crypto wallets may facilitate illicit activities like money laundering.
ACINQ and zkSNACKs are worried that self-custodial wallet providers may not be considered legitimate money service businesses after the U.S. regulatory agencies took action against Consensys, the creator of Metamask, and Samourai Wallet, a crypto mixer.
zkSNACKs’ Deadline
zkSNACKs stated on April 27 that it is now strictly prohibiting U.S. users from accessing its services due to recent U.S. announcements.
ACINQ, on the other hand, explained that recent U.S. announcements have raised doubts about whether self-custodial wallet providers, Lightning service providers, or even Lightning nodes could be considered Money Services Businesses and be regulated as such. In contrast, European regulators have recently eased potential proposed regulations concerning self-custody wallets.
On March 23, the European Parliament’s lead committees scrapped a 1,000 euro ($1,080) limit on crypto payments from self-hosted crypto wallets as part of new anti-money laundering laws.
Conclusion
ACINQ and zkSNACKs have stopped offering their Bitcoin wallets, Phoenix Wallet and Wasabi Wallet, respectively, to customers based in the United States. They fear that self-custodial wallet providers may not be considered legitimate money service businesses after the recent crackdown on two major self-custodial cryptocurrency wallet providers. Phoenix Wallet users have until May 2 to adjust to the changes.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
