NAIROBI (CoinChapter.com) — Wasabi Wallet, a popular Bitcoin privacy wallet, has blocked U.S. citizens and residents from using its services, including websites, downloads, and APIs. The move is a response to increased regulatory pressure on crypto wallets within the United States.

zkSNACKs, the company behind Wasabi Wallet, announced the ban on April 27, 2024. They cited “recent announcements by U.S. authorities” as the reason for their decision. The company now uses IP address blocking to prevent U.S. users from accessing wasabiwallet.io, api.wasabiwallet.io, and zksnacks.com.

The announcement leaves no room for ambiguity, stating, “If you are a United States Citizen or Resident, you are not allowed to visit any of the aforementioned sites, download Wasabi Wallet, or use the Wasabi Wallet conjoin feature. This includes if you are a U.S. permanent resident or an individual holding a U.S. passport.”

U.S. Authorities Crackdown on Privacy Wallets

The Wasabi Wallet ban follows recent enforcement actions by U.S. authorities against privacy-focused cryptocurrency wallets. On April 24, 2024, the Federal Bureau of Investigation (FBI) seized the website of Samourai Wallet, a direct competitor to Wasabi Wallet, and arrested its developers.

Source: FBI

A day later, the FBI issued a public service announcement warning against “cryptocurrency money transmitter businesses,” casting doubt on what constitutes a regulated entity. This regulatory uncertainty has prompted some companies, like ACINQ, a Lightning Network service provider, to announce their departure from the United States.

Implications for Bitcoin Demand and Adoption

The exodus of privacy wallet providers and the restrictions imposed by companies like zkSNACKs could have far-reaching implications for Bitcoin demand and adoption in the United States. As privacy becomes increasingly challenging, some users may be deterred from embracing the cryptocurrency, potentially hindering its mainstream adoption.

Source: X

According to data from CoinMetrics, the Wasabi Wallet has facilitated over $2.3 billion in Bitcoin transactions since its inception, highlighting its significance in the cryptocurrency ecosystem. The absence of such privacy-focused solutions could discourage a segment of users who prioritize financial privacy.

Bitcoin’s performance has remained resilient despite the industry’s regulatory challenges. As of the latest data, Bitcoin (BTC) is trading at approximately $63,563.17, with a 24-hour change of 0.64%. The cryptocurrency’s market capitalization stands at a staggering $1,252,425,079,478.

BTC/USD 1-day chart. Source: CoinMarkertCap

Currently, 88% of Bitcoin holders are making a profit at the current price, indicating strong investor sentiment. In terms of transaction demographics, 51% of transactions greater than $100,000 originate from the Western Hemisphere, while 49% come from the Eastern Hemisphere.

As the regulatory landscape evolves, the crypto community awaits clarity from authorities. Recent actions against Wasabi Wallet and similar services ignite debates. These debates center on user privacy, regulatory overreach, and the future of decentralized finance.

The post U.S. Citizens Locked Out: Wasabi Wallet’s Shocking Ban Amid Crypto Crackdown appeared first on CoinChapter.

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Filed under: Bitcoin - @ April 29, 2024 5:25 am