Acinq’s Phoenix Wallet and zkSNACKs’ Wasabi Wallet are discontinuing services for U.S. customers following regulatory actions against self-hosted cryptocurrency wallet providers. This decision comes in the wake of crackdowns on industry leaders like Consensys and Samourai Wallet.
zkSNACKs recently announced a strict ban on U.S. users accessing its services, while Acinq expressed doubts about the legitimacy of self-hosted wallet providers as regulated businesses in an April 26 article. Phoenix Wallet users have until May 2 to adjust, whereas Wasabi Wallet's new policy took immediate effect.
Acinq advised Phoenix Wallet users to empty their wallets before the deadline, warning against force closing due to potential high on-chain fees. Regulators globally have raised concerns that self-hosted wallets could facilitate illicit activities, such as money laundering.
The SEC issued a Wells Notice to Consensys on April 10, indicating potential enforcement action over its MetaMask products. Allegations include operating as an unregistered broker-dealer. On April 24, Samourai Wallet's co-founder was arrested on money laundering charges, underscoring heightened regulatory scrutiny.
Despite these developments, European regulators have taken a different stance. The European Parliament’s leadership committee eliminated the €1,000 limit on crypto payments from self-hosted wallets as part of new anti-money laundering laws. However, exchanges still need to conduct due diligence on users engaging in commercial transactions exceeding €1,000.
