Amid growing regulatory crackdowns in the United States, non-custodial Bitcoin lightning wallet Phoenix Wallet has revealed its plans to exit from both the Google Play Store and Apple App Stores.

Phoenix Wallet US Exit is Imminent

The removal will take effect from May 3rd, 2024 hence, U.S users are advised to move their assets from their wallets before the set date. In the process of emptying their wallets, Phoenix Wallet recommends that users do “not force-closing” channels because on-chain fees could be significant.

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

This decision follows an initial X post from ACINQ, the company behind Phoenix Wallet, suggesting a possible halt in the Wallet service.

“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 posted on X. 

Governments Cracking Down on Crypto

It is worth acknowledging that this kind of action from Phoenix Wallet is fast becoming the trend in the U.S., further cementing conversations about the region’s crackdown on crypto businesses. Keonne Rodriguez and William Lonergan Hill, founders of Bitcoin mixing wallet Samourai were recently indicted in the Southern District of New York.

The allegations against them include conspiracy to commit money laundering and operating an unlicensed money-transmitting business. This was later followed by a warning from the Federal Bureau of Investigation (FBI) informing crypto users of its “operations’ towards a variety of unregistered crypto firms believed to be involved in money services businesses.

Therefore, users were notified that they may experience some “financial disruptions.” Some other previously recorded enforcement actions from the U.S authorities are sanctioning addresses used for Tornado Cash, convicting the operator of the Bitcoin Fog mixer, and many others.

Other regions are equally exhibiting the same sentiment towards digital assets service providers. Popular cryptocurrency exchange Binance is faced with a ban from West African country Nigeria over money laundering charges totaling $35.4 million. The Securities and Exchange Commission in the Philippines also recently requested that the Binance app be taken down from both Google Play Store and Apple App Store.

The authorities made this decision after discovering that the public’s continued access to Binance websites and apps puts them at risk.

The post Phoenix Wallet Unveils US App Store Delisting Date, What Happened? appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am