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Phoenix Wallet has confirmed the decision to halt its services in the United States. The operator announced that it would remove the app on May 3, 2024, from the US 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
Notably, the provider urged its customers in the United States to withdraw their assets.
Further, users should avoid force-closing their wallets to prevent heightened on-chain fees.
Phoenix Wallet’s developer ACINQ prompted the decision to leave the US market, citing regulatory challenges in the United States.
“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 Business and be regulated as such.”
Phoenix stated that it will continue to assess other possible effects of exiting the United States.
Increasing spotlight on crypto wallets
Phoenix Wallet’s decision to leave the United States market comes amid increased regulatory scrutiny.
Recently, authorities indicted Samourai developers for running illicit transactions, including money laundering.
In the past few days, attacks on Bitcoin have intensified as the Feds arrested the developers of @SamouraiWallet and then, @PhoenixWallet withdrew their app from the App Store. Now, the @The_DTCC has declared that crypto will not be accepted as collateral starting next week.😡…
— Michael Englander⚡️ (@MichaelEnglande) April 27, 2024
Moreover, blockchain company Terraform Labs ceased its operations in the US due to regulatory uncertainties.
The post Phoenix Wallet to terminate its services to US clients on May 3 appeared first on Invezz
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