In the face of growing regulatory scrutiny, the non-custodial Bitcoin lightning wallet, Phoenix Wallet, has announced its plans to exit the US market. This decision comes as the latest development in the ongoing crackdown on cryptocurrency businesses by US authorities.

Phoenix Wallet's US Departure

Phoenix Wallet, a lightning network-enabled wallet, has revealed that it will be removing its app from both the Google Play Store and Apple App Store in the United States. This move will take effect on May 3rd, 2024, leaving US users with a limited time to transfer their assets from the wallet before the set date.

In the process of emptying their wallets, Phoenix Wallet advises users to avoid "force-closing" channels, as on-chain fees could be significant. This decision follows an earlier announcement from ACINQ, the company behind Phoenix Wallet, hinting at a possible halt in the wallet's service.

Regulatory Crackdown on Crypto

The Phoenix Wallet's exit from the US market is part of a broader trend, as authorities in the region continue to tighten their grip on cryptocurrency businesses. This crackdown has led to various enforcement actions, including the indictment of the founders of the Bitcoin mixing wallet, Samourai, and the sanctioning of addresses used for Tornado Cash.

Furthermore, the US authorities have issued warnings to crypto users, informing them of potential "financial disruptions" due to their operations targeting unregistered crypto firms believed to be involved in money services businesses.

Global Sentiment Towards Crypto

The regulatory scrutiny on cryptocurrency service providers is not limited to the US alone. Other regions, such as West Africa and the Philippines, have also exhibited a similar sentiment. For instance, the Nigerian authorities have banned the popular cryptocurrency exchange, Binance, over money laundering charges, while the Securities and Exchange Commission in the Philippines has requested the removal of the Binance app from both the Google Play Store and Apple App Store.

These actions highlight the growing global concern over the potential risks associated with the cryptocurrency industry, and the increasing efforts by authorities to tighten their control over the sector.