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- Phoenix Wallet has announced that it will terminate its operations to U.S. customers.
- On May 3, Phoenix Wallet will be removed from U.S. app stores.
- The Wallet’s operator advised users to empty their wallets immediately.
Phoenix Wallet, a Bitcoin wallet created by the Bitcoin technology company ACINQ, has announced that it will terminate its operations to U.S. customers. In a recent post on X, the wallet operator noted that on May 3, it will remove Phoenix Wallet from U.S. app stores.
On May 3rd, 2024, @PhoenixWallet will be removed from US app stores.Users from the US should empty their wallet:– Settings > Close channels (Android)– Settings > Drain wallet (iOS)We highly recommend *not force-closing* channels, as on-chain fees could be significant.— Phoenix Wallet (@PhoenixWallet) April 26, 2024
Following the announcement, the wallet provider advised users in the U.S. to empty their wallets, highlighting the steps to follow. The wallet operator also warned users not to “force close” their wallets under any given circumstances. According to them, doing so could incur significant on-chain fees.
There are indications that it was ACINQ’s decision for Phoenix Wallet to exit the U.S. In an alternative post, ACINQ cited regulatory complications in the U.S. as the reason for the latest decision. According to the crypto wallet provider, authorities in the U.S. classified service providers in the same category as Phoenix Wallet as Money Services Businesses, noting it could determine how they would be regulated.
Recent announcements from US authorities cast a doubt on whether self-custodial wallet providers, Lightning service providers, or even Lightning nodes could be considered Money Services Businesses and be regulated as such.— ACINQ (@acinq_co) April 26, 2024
ACINQ’s decision followed a recent announcement by the U.S. regulatory authorities that cast doubt on how self-custodial wallet providers, Lightning service providers, and even Lightning nodes will be classified. The wallet provider told users it would go ahead and assess other potential impacts of the decision to leave the U.S. on their operations.
Recently, a court in the Southern District of New York indicted the founders of the Bitcoin mixing wallet, Samourai, alleging that they facilitated illegal transactions, including laundered funds. Following the incident, the Federal Bureau of Investigations (FBI) warned users that it had begun ‘operations’ on various unregistered crypto firms.
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