ZkSNACKs, the company behind Wasabi Wallet, a popular Bitcoin wallet known for its privacy features, has unexpectedly barred users from the United States from accessing its products and services. This decision came as a surprise to many in the crypto community, leading to lively discussions and speculation.
As a researcher studying the latest developments in the cryptocurrency sector, I’ve come across an intriguing announcement from ZkSNACKs, the creators of Wasabi Wallet – a privacy-focused Bitcoin wallet solution. They have recently declared that users residing in the United States will be restricted from utilizing their products and services, effective immediately. This decision has ignited intense debates and conjectures within the crypto community, with many drawing parallels to the recent apprehension of Samourai Wallet’s founders.
Why Did Wasabi Wallet Block US Users?
On Saturday, April 27, zkSNACKs announced through a blog post that individuals based in the United States would be prevented from accessing its websites and using the Wasabi Wallet permanently. The business will also deactivate other offerings, including APIs and RPC interfaces.
The statement read:
“The term ‘U.S.’ represents ‘United States’ and encompasses various states and related territories. If you possess United States citizenship or residency, you’re prohibited from accessing the mentioned sites, downloading Wasabi Wallet, or utilizing its coinjoin feature. This restriction applies to both permanent residents and individuals carrying a U.S. passport.”
As an analyst, I’d rephrase that sentence as follows: In the blog post, zkSNACKs cited “recent developments” by US authorities as the main cause for their withdrawal from the American markets. While it is unclear which specific announcement triggered this move, there is widespread speculation that the arrest of Samourai Wallet’s founders for privacy-related offenses may have been a significant contributing factor.
According to Bitcoinist’s report, Keonne Rodriguez and William Lonergan Hill, the founders of Samourai Wallet, have been taken into custody by US authorities for suspected operation of an unlicensed money transfer service and conspiracy to launder money. They are alleged to have assisted in the laundering of more than $100 million worth of ill-gotten gains, some of which originated from the Silk Road and Hydra Market.
In recent weeks, the SEC in the United States has been examining Consensys, the company behind MetaMask digital wallet, over certain aspects of its service. Specifically, the regulatory body is focusing on MetaMask’s swap and staking features.
Phoenix Wallet Leaves The US Market
ACINQ’s Phoenix Wallet has announced its intention to withdraw from the US market by the end of this month. Users based in the US have been advised to transfer their assets out and empty their wallets by May 3, 2023.
ACINQ wrote in a post on X:
New information from American regulatory bodies has raised questions about whether companies that offer self-custody wallets, Lightning service provision, or even run Lightning nodes might be classified as Money Services Businesses (MSBs) and subjected to regulation accordingly.
The departure of self-custody crypto wallets and related initiatives from the US underscores the complex regulatory landscape and volatility facing the cryptocurrency sector, including privacy-focused technologies.
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2024-04-28 11:26