Phoenix and Wasabi Halt US Operations Amid Regulatory Pressure: Self Custody on Trial?

Monday, 29 April 2024, 12:10

Phoenix Wallet and Wasabi Wallet, two major service providers, have decided to discontinue their operations in the United States due to regulatory pressure against self-custody wallet service providers. This move reflects a growing concern about potential classification as money services businesses, following the recent actions against similar firms. The regulatory actions highlight the risks surrounding self-custody wallets and their potential misuse for illicit purposes, prompting companies to reassess their operations in compliance with regulations.
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Phoenix and Wasabi Halt US Operations Amid Regulatory Pressure: Self Custody on Trial?

Regulatory Actions Impact Self-Custody Wallet Providers

After the crackdown on Samourai Wallet and MetaMask, Phoenix and Wasabi are halting their US services due to regulatory concerns.

ACINQ Raises Doubts

ACINQ expressed worries over potential classification as money services businesses by US authorities, leading to the removal of Phoenix Wallet from US stores by May 3.

zkSNACKs Blocks US Access

zkSNACKs has prohibited US users from accessing its services, citing regulatory uncertainties.

US Regulators Target Self-Custody Wallets

Recent arrests and seizures point to authorities’ focus on potential money laundering risks associated with self-custody wallets.

Consensys Challenges SEC

Consensys files lawsuit against SEC over Ethereum regulations, emphasizing the need for clear guidelines over ad hoc enforcement.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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