In response to heightened scrutiny from U.S. regulatory policies, self-custodial cryptocurrency wallet providers Acinq’s Phoenix Wallet and zkSNACKs’ Wasabi Wallet have ceased operations for U.S. customers. This follows a crackdown on Consensys and the arrest of Samourai Wallet’s co-founders, raising concerns over the classification of these services as legitimate money service businesses under U.S. law.
The U.S. Securities and Exchange Commission (SEC) has issued a Wells notice to Consensys, signaling potential enforcement actions over its MetaMask Swaps and Staking products. This has created uncertainty, making other crypto services cautious about continuing in the U.S. without clearer guidelines.
Phoenix Wallet and Wasabi Wallet have stopped serving U.S. customers due to this increased regulatory scrutiny. zkSNACKs banned U.S. users on April 27, while ACINQ set a May 2 deadline for Phoenix Wallet users to adapt.
While U.S. authorities have tightened their grip on cryptocurrency operations, European regulators have shown a tendency to adopt a more lenient approach. This contrasting approach will likely influence how cryptocurrency businesses decide to allocate their operations and services across different global markets.
The regulatory landscape is continuously evolving, pushing the industry towards more transparent and regulated practices. For companies like Wasabi and Phoenix Wallet, navigating these changes is essential for their operations and global influence.