The Recent Shift in bitcoin Wallet Landscape
Wallet of Satoshi (WoS) recently made an announcement to withdraw its app from the U.S. Apple and Google app stores and cease serving U.S. customers. This decision reflects the increasingly challenging regulatory environment in the United States, affecting not only WoS but other crypto service providers as well.
GameStop, known for its video game retailing, also terminated its crypto wallet service due to the uncertain regulatory climate in the U.S. The service, which was integrated with ethereum‘s layer-2 scaling protocol, allowed users to hold, trade crypto, and access decentralized apps. However, unspecified regulatory uncertainties led to its discontinuation.
Regulatory Pressures on Crypto
The U.S. federal government has been contemplating enforcing know-your-customer (KYC) rules on unhosted or self-hosted crypto wallets. This proposal by the Financial Crimes Enforcement Network (FinCEN) requires crypto exchanges to collect detailed personal information for transactions involving private wallets. The crypto industry expressed concerns over the feasibility and burden of these rules, given the nature of certain wallets and individual privacy considerations.
Binance, the world’s largest cryptocurrency exchange, has also faced regulatory hurdles. The SEC sued Binance and its U.S. operator for several allegations, including artificially inflating trading volumes and mismanaging customer funds. In response, Binance.US reached an agreement with the SEC, restricting access to U.S. customer assets to Binance.US employees only. This agreement is part of broader regulatory crackdown efforts in the U.S. crypto industry.
### News source: blockchain.news