Phoenix Wallet Unveils US App Store Delisting Date, What Happened?

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As a researcher with a background in cryptocurrency and blockchain technology, I’m closely monitoring the latest developments in the regulatory landscape for digital assets. The announcement by Phoenix Wallet that they will be exiting both the Google Play Store and Apple App Stores for U.S. users starting May 3rd, 2024, is a significant development that underscores the increasing regulatory pressure on crypto businesses in the United States.

In response to intensifying regulatory scrutiny in the US, Phoenix Wallet – a popular non-custodial Bitcoin wallet that doesn’t hold users’ funds – has announced its intention to remove its app from both the Google Play Store and Apple App Stores.

Phoenix Wallet US Exit is Imminent

Beginning May 3, 2024, the removal will be implemented. Consequently, it is recommended for U.S users to transfer their assets out of their Phoenix Wallets prior to this date. While emptying your wallet, Phoenix Wallet advises against forcefully closing channels as on-chain fees may become quite substantial.

On May 3rd, 2024, @PhoenixWallet will be removed from US app stores.

As a U.S.-based crypto investor, I would recommend taking the following steps to ensure you’re not leaving any funds in your wallet:

We highly recommend *not force-closing* channels, as on-chain fees could be significant.

— Phoenix Wallet (@PhoenixWallet) April 26, 2024

Based on ACINQ’s preliminary announcement as the creator of Phoenix Wallet, there is a possibility that the wallet service may be suspended.

As a crypto investor, I’ve been keeping a close eye on the latest developments in the regulatory landscape. Lately, there have been some unsettling announcements from US authorities that have left me questioning the potential regulatory status of self-custodial wallet providers, Lightning service providers, and even Lightning nodes. According to ACINQ’s recent statement posted on X, these entities could be classified as Money Services Businesses and therefore subjected to regulation. This news has left many in the crypto community feeling uncertain about the future implications for these services.

Governments Cracking Down on Crypto

Recognizing the growing trend in the United States, it’s important to note that Phoenix Wallet’s behavior is drawing attention, strengthening discussions about regulatory scrutiny towards crypto businesses. The founders of Bitcoin mixing wallet Samourai, Keonne Rodriguez and William Lonergan Hill, have recently been indicted in the Southern District of New York.

The accusations against them encompass money laundering conspiracy and running an unauthorized money-transmitting business. Subsequently, the Federal Bureau of Investigation (FBI) issued a notice to cryptocurrency users about their ongoing investigations into several unregistered crypto companies suspected of engaging in money services businesses.

As a researcher, I’ve discovered that users have been informed they might encounter some financial interruptions. Previously, the U.S authorities have taken enforcement actions against certain addresses linked to Tornado Cash, as well as prosecuting the operator of Bitcoin Fog mixer, among other instances.

In various other regions, there’s been a similar expression of disapproval towards digital asset service providers. For instance, cryptocurrency exchange Binance is currently prohibited from operating in Nigeria due to allegations of money laundering amounting to $35.4 million. Meanwhile, the Securities and Exchange Commission in the Philippines has demanded that the Binance app be removed from both Google Play Store and Apple App Store.

As a cautious crypto investor, I would rephrase it as follows: Upon learning that using Binance platforms could potentially expose us to risks, the authorities have decided to take action.

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2024-04-27 20:28