Phoenix Wallet to terminate its services to US clients on May 3
- Users will not access the wallet from US app stores.
- The operator has urged users to withdraw funds immediately.
- The decision comes amid augmented regulatory scrutiny in the United States.
Phoenix Wallet has confirmed the decision to halt its services in the United States. The operator announced that it would remove the app on May 3, 2024, from the US app stores.
Notably, the provider urged its customers in the United States to withdraw their assets.
Further, users should avoid force-closing their wallets to prevent heightened on-chain fees.
Phoenix Wallet’s developer ACINQ prompted the decision to leave the US market, citing regulatory challenges in the United States.
“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 Business and be regulated as such.”
Phoenix stated that it will continue to assess other possible effects of exiting the United States.
Increasing spotlight on crypto wallets
Copy link to sectionPhoenix Wallet’s decision to leave the United States market comes amid increased regulatory scrutiny.
Recently, authorities indicted Samourai developers for running illicit transactions, including money laundering.
Moreover, blockchain company Terraform Labs ceased its operations in the US due to regulatory uncertainties.
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