zkSNACKs Bans U.S. Users from Wasabi Wallet and Other Services Following Recent Developments
ACINQ’s Phoenix Wallet and zkSNACKs’ Wasabi Wallet have decided to discontinue their services for customers in the United States.
The move comes as a response to the recent crackdown on self-custodial cryptocurrency wallet providers by regulatory agencies .
Both companies have expressed concerns about the classification of self-custodial wallet providers as legitimate money service businesses, following actions taken against Consensys, the creator of Metamask, and crypto mixer Samourai Wallet.
In an official statement on April 27, zkSNACKs announced that it would prohibit U.S. users from utilizing its services due to recent announcements by U.S. authorities.
Similarly, ACINQ explained in a post on X on April 26 that recent regulatory developments raised doubts about whether self-custodial wallet providers, Lightning service providers, or even Lightning nodes could be considered Money Services Businesses and subjected to regulation.
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 has given Phoenix Wallet users until May 2 to adjust to the upcoming changes, while Wasabi Wallet’s new policy was implemented immediately.
ACINQ advised Phoenix Wallet users to drain their wallets without force-closing them to avoid significant on-chain fees.
The recent regulatory focus on self-custodial wallets stems from concerns that they may facilitate illicit activities such as money laundering.
Consensys, the creator of MetaMask, received a Wells notice from the SEC on April 10, which warned of potential
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