Sun, April 28, 2024 at 15:08

• 

  Kang-hoon

  • Good day, Annie.

  • I have some news regarding Phoenix Wallet, a Bitcoin wallet provider for Lightning Network payments.

  • They have announced that they will be removing their application from US application stores.

  • 
• Annie

  • Oh, really?😮 Why are they doing that?

  
• 

  Kang-hoon

  • This decision comes after the company expressed disappointment over the US regulation of self-custodial wallets.

  • The US Federal Bureau of Investigation recently warned users against engaging in unregistered crypto money-transmitting businesses.

  • 
• Annie

  • So, they're upset about the regulations?

  
• ADward

  • Hold on! Behold, an advertisement awaits. Legend has it that clicking on this ad will make the AI server even smarter... 😅

  
• 

  Kang-hoon

  • Yes, exactly.

  • The US authorities have highlighted self-custodial wallets, which require no know-your-customer procedure, as the primary type of such money-transmitting services.

  • Following this, ACINQ, the developers of Phoenix Wallet, announced the removal of the app from all US application stores on May 3rd.

• Annie

  • That's so soon!

  • What about the people who are currently using the app in the US?😕

  
• 

  Kang-hoon

  • Phoenix Wallet has advised US-based users to empty their wallets.

  • 

  • They also advised not to force-close channels to avoid significant on-chain fees.

• Annie

  • I see... Are there any other companies doing this?

  
• 

  Kang-hoon

  • Yes, zkSNACKs has also banned US citizens from accessing its Wasabi crypto wallet and all associated products and services.

  • They didn't give a specific reason, but they highlighted recent announcements by US authorities as a contributing factor to their decision.

• Annie

  • Wow, this seems like a big deal.

  • Do you think more companies will follow?😟

  
• 

  Kang-hoon

  • It's possible.

  • The US is continuously criticized for lacking a clear regulatory framework for the crypto industry.

  • With the SEC's constant crackdown on crypto exchanges and the Department of Justice going after developers, we might see more companies leaving the US market.

• Annie

  • That sounds like bad news for the US crypto market.😔 But how's the overall crypto market doing?

  
• 

  Kang-hoon

  • In other news, the cryptocurrency market has performed well in the last day, gaining by 2.70% to attain a market cap of $2.38 trillion.

  • Ethereum (ETH) and Solana (SOL) lead the way among the top 10 largest tokens, with daily gains of 6.20% and 5.34%, respectively.

• Annie

  • That's good to hear!😊 But overall, would you say this news is bad or good?

  
• 

  Kang-hoon

  • From a short-term perspective, this news can be seen as negative for the US crypto market and its users.

  • 

  • The exit of these companies could lead to less competition and potentially higher fees for users.

  • However, it could also push for necessary changes in regulation.

  • Upon comprehensive consideration, this news is perceived as a 😱Bearish.