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2024

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Phoenix

<ul>
 <li>Acinq, zkSNACKs exit US, highlight regulatory challenges.</li>
 <li>US crackdown prompts Acinq and zkSNACKs to cease services.</li>
 <li>Acinq, zkSNACKs adapt strategy amidst regulatory shift.</li>
</ul>
<p>Acinq and zkSNACKs, prominent in the cryptocurrency wallet service market, have recently withdrawn from the United States. Acinq’s Phoenix Wallet and zkSNACKs’ Wasabi Wallet will <a href="https://blog.wasabiwallet.io/zksnacks-now-blocking-u-s-residents-and-citizens/" target="_blank" rel="noopener noreferrer nofollow">cease</a> operations for U.S. customers due to the intensified scrutiny of self-custody cryptocurrency wallets by U.S. authorities.</p>
<p>Recent actions against Consensys and <a href="https://cryptonewsland.com/samourai-wallet-co-founders-arrested-on-money-laundering-charges/" target="_blank" rel="noopener noreferrer nofollow">Samourai Wallet</a> have caused a ripple effect in the cryptocurrency service sector. These incidents have led to heightened uncertainty regarding the status of self-custodial wallet providers as legitimate money services businesses.&nbsp;</p>
<p>Consequently, Acinq and zkSNACKs are taking preemptive measures to safeguard their operations. Acinq has informed Phoenix Wallet users they have until May 2 to prepare for the impending changes. Meanwhile, Wasabi Wallet immediately implemented its new policy, urging users to comply immediately.</p>
<p><strong>Industry Adapts Amid Regulatory Changes</strong></p>
<p>These wallet services’ pivot away from the U.S. market underlines the broader impact of the U.S. crackdown on self-custody solutions. Phoenix Wallet has advised users to transfer their funds but has warned against “force-closing” wallets due to potentially high on-chain fees. This guidance comes as global regulators express concerns that self-custody crypto wallets could be used to facilitate illicit activities such as money laundering.&nbsp;</p>
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   <p lang="en" dir="ltr">On May 3rd, 2024, <a href="https://twitter.com/PhoenixWallet?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@PhoenixWallet</a> will be removed from US app stores.<br><br>Users from the US should empty their wallet:<br>– Settings &gt; Close channels (Android)<br>– Settings &gt; Drain wallet (iOS)<br><br>We highly recommend *not force-closing* channels, as on-chain fees could be significant.</p>— Phoenix Wallet (@PhoenixWallet) <a href="https://twitter.com/PhoenixWallet/status/1783878658014249027?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">April 26, 2024</a>
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<p>These developments arrive amidst increased regulatory scrutiny within the U.S. On April 25, reports emerged of Consensys receiving a Wells notice from the SEC, hinting at possible enforcement actions. This news was followed by the arrest of the co-founders of Samourai Wallet on charges related to money laundering and operating an unlicensed money-transmitting business. These regulatory measures have sent a clear signal to the crypto industry, resulting in a cautious approach by wallet service providers.</p>
<p>The crypto community watches closely as the balance between innovation and regulation continues to shape the future of digital assets. Acinq and zkSNACKs’ response signifies a shift in the industry, emphasising the need for compliance and the importance of operating within the boundaries of regulatory frameworks.</p>
<h4 class="wp-block-heading" id="h-read-also">Read Also:</h4>
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<p>The post <a href="https://cryptonewsland.com/u-s-crackdown-leads-to-sudden-withdrawal-of-crypto-wallet-services/" rel="noopener noreferrer nofollow">U.S. Crackdown Leads to Sudden Withdrawal of Crypto Wallet Services</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

U.S. Crackdown Leads to Sudden Withdrawal of Crypto Wallet Services

Crypto News Land

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