Phoenix Wallet, a popular Bitcoin wallet for Lightning Network payments, will no longer be available in the United States.
Regulatory Discrimination
The wallet’s parent company, ACINQ, has criticized the US government’s regulation of self-custodial wallets, which allow users to control their own funds without the involvement of a third party.
The US authorities have recently classified self-custodial wallets as money services businesses, which require registration and compliance with regulations. ACINQ believes this is unfair and discriminatory.
Wallet Removal
As a result of this regulatory pressure, ACINQ has decided to remove the Phoenix Wallet app from all US application stores on May 3rd, 2024.
Instructions for US Users
US users are advised to empty their wallets before the shutdown. They should:
- Go to ‘Settings’ and select ‘Close Channels’ on Android devices.
- Select ‘Drain Wallet’ on iOS devices.
Other Crypto Companies Following Suit
Phoenix Wallet is not the only crypto company to take action in response to US regulations. zkSNACKs has also banned US citizens from accessing its Wasabi crypto wallet.
Market Overview
Despite these regulatory concerns, the cryptocurrency market has performed well recently. Ethereum (ETH) and Solana (SOL) have seen significant gains, while Bitcoin has also risen slightly.
