Crypto wallets exit US amid regulatory pressure

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

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

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

ACINQ plans to remove Phoenix Wallet from US app stores by May 3.

These steps reflect the companies’ efforts to comply with potential regulations that classify self-custody wallets as money services businesses and impose strict regulatory requirements.

Regulatory pressure on cryptocurrency services has intensified after two people linked to Samourai Wallet were arrested on charges of laundering money from illicit sources, including the Silk Road market.

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

Keonne Rodriguez, co-founder of privacy-focused crypto wallet Samourai Wallet, was released on $1 million bond.

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