In response to regulatory crackdowns, ACINQ’s Phoenix Wallet and zkSNACKs’ Wasabi Wallet have stopped serving US customers. Both companies expressed concerns about the potential regulation of self-custodial wallets following the recent actions against Consensys and Samourai Wallet.
As a financial analyst, I would rephrase it as follows: I have learned that ACINQ’s Bitcoin wallet, Phoenix Wallet, and zkSNACKs’ Wasabi Wallet are taking steps to cease their services for customers residing in the United States. This decision comes in response to the recent regulatory crackdown on self-custodial cryptocurrency wallet providers.
Self-custodial wallet providers like ACINQ and zkSNACKs have expressed apprehension over their status as legitimate money service businesses in light of the US regulatory crackdown on Consensys, the Metamask creator, and Samourai Wallet, a crypto mixer.
As a crypto investor, I’ve received some disappointing news. zkSNACKs has announced that due to recent regulatory actions by U.S. authorities, they are no longer permitting American users to access their services. This restriction was communicated in an official statement on April 27th.
In a blog post on X published on April 26, ACINQ expressed uncertainty about the regulatory status of self-custodial wallet providers, Lightning service providers, and even Lightning nodes, following recent declarations from US authorities.
ACINQ has allowed Phoenix Wallet users until May 2nd to adapt to the impending modifications, whereas Wasabi Wallet enacted its new policy “right away.”
ACINQ advised Phoenix Wallet users to empty their wallets completely, but they shouldn’t abruptly close them. The reason being, on-chain transaction fees might be substantial.
As a crypto investor, I’ve noticed that there’s been a lot of debate among regulators about the use of self-custody wallets. Some argue that these wallets could make it easier for people to engage in illegal activities like money laundering. However, it’s important to remember that the responsibility for ensuring the legality of transactions lies with the user, not the wallet itself.
As a researcher, I came across an article published by CryptoMoon on April 25, which disclosed that ConsenSys had received a Wells notice from the Securities and Exchange Commission (SEC) on April 10. The notice signaled possible enforcement actions against ConsenSys regarding their MetaMask Swaps and MetaMask Staking products.
In a reported telephone call, the Securities and Exchange Commission (SEC) is said to have claimed that ConsenSys was functioning without registration as a broker-dealer.
The day before, on April 25, CryptoMoon announced that the founders of Samourai Wallet cryptocurrency mixer were taken into custody by the U.S. Justice Department (DOJ) and other law enforcement agencies due to allegations of money laundering.
The CEO of Samourai Wallet, Keonne Rodriguez, and the company’s CTO, William Hill, each stand accused of conspiring to commit money laundering, which carries a potential penalty of up to 20 years in prison. Additionally, they are charged with conspiring to run an unlicensed money transmitting business, which is punishable by a maximum term of five years in prison.
As a researcher following the developments in European regulatory landscape, I’ve noticed a recent shift in stance towards self-custody wallets. Previously proposed regulations may have been more restrictive, but there are signs of relaxation in this area.
As a researcher studying the latest developments in the cryptocurrency sphere, I came across an interesting update on March 23rd. According to CryptoMoon’s report, key European Parliament committees decided to abandon the proposed 1,000 euro ($1,080) cap on crypto transactions originating from self-hosted digital wallets within the context of new anti-money laundering regulations.
Crypto exchanges are required to conduct thorough investigations, including identity verifications, for users engaging in transactions valued over 1,000 euros.
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2024-04-28 04:02