ACINQ, developer of Phoenix Wallet, and zkSNACKs, creator of Wasabi Wallet, react to US regulatory caution, withdrawing their services from the US market.
- ACINQ expresses dismay over US non-inclusion of self-custodial wallets in money services businesses.
- Phoenix Wallet to be removed from US app stores on May 3rd.
- Users advised to empty wallets, avoid force-closing channels.
- zkSNACKs follows suit, banning US access to Wasabi Wallet and products.
ACINQ, the developer behind Phoenix Wallet, voiced disappointment in the US Federal Bureau of Investigation’s stance on self-custodial wallets and Lightning services. Concerned about regulatory implications, ACINQ announced the removal of Phoenix Wallet from US app stores effective May 3rd, 2024. Users are urged to empty their wallets without force-closing channels to evade excessive on-chain fees.
In a parallel move, zkSNACKs, the team behind Wasabi Wallet, barred US citizens from accessing its products and services. Although the company did not specify the reason, it cited recent announcements by US authorities as a contributing factor.
The decisions by ACINQ and zkSNACKs underscore the regulatory uncertainty facing crypto businesses in the US. Critics argue that the lack of a clear regulatory framework threatens the industry’s growth and prompts companies to take preemptive measures.
Market Response and Future Implications
Despite regulatory concerns, the cryptocurrency market showed resilience, recording a 2.70% gain with a market cap of $2.38 trillion. Ethereum (ETH) and Solana (SOL) led the charge among the top 10 tokens, registering daily gains of 6.20% and 5.34%, respectively. Bitcoin, the dominant digital asset, traded at $63,855 with a 1.46% increase.
The market’s positive performance contrasts with the regulatory challenges faced by crypto businesses. With ongoing scrutiny from the Securities and Exchange Commission (SEC) and Department of Justice, the industry awaits legislative clarity from the US Congress to navigate future regulatory hurdles.