Crypto wallets exit US amid regulatory pressure

Wasabi Wallet and Phoenix have suspended their services for customers in the United States.

The companies behind these wallets, zkSNACKs and ACINQ, announced the suspensions following actions taken by U.S. authorities against similar cryptocurrency services.

zkSNACKs has already implemented measures to block U.S. IP addresses from accessing its services, including the Wasabi Wallet.

ACINQ plans to remove its Phoenix Wallet from U.S. application stores by May 3.

These steps reflect the companies’ efforts to comply with potential regulations classifying self-custody wallets as money services businesses, which would impose strict regulatory requirements.

The regulatory pressure on cryptocurrency services has intensified following the arrest of two individuals linked to the Samourai Wallet on charges of laundering money from illegal sources, including the Silk Road marketplace.

The U.S. government’s crackdown on Samourai Wallet resulted in the seizure of its web servers and domain, as well as the app’s removal from the Google Play Store in the U.S.

Keonne Rodriguez, co-founder of the privacy-focused crypto wallet Samourai Wallet, was granted release on a US$1 million bond.

Rodriguez pleaded not guilty to charges of money laundering and operating an unlicensed money-transmitting business on Monday at the U.S. District Court for the Southern District of New York.