Phoenix Wallet, a provider of Bitcoin wallets for Lightning Network payments, has announced it will remove its app from US app stores. This comes as the company behind the wallet, ACINQ, disagrees with how self-custodial wallets are regulated in the US.

On April 26, ACINQ expressed disappointment over the US not considering self-custodial wallet providers, Lightning service providers, and Lightning nodes as money services businesses. This was prompted by a recent warning from the US Federal Bureau of Investigation about unregistered crypto money-transmitting businesses.

The US specifically pointed out self-custodial wallets, which don't require identity verification, as the main type of such money-transmitting services. Following this, ACINQ announced the removal of the Phoenix wallet app from all US app stores on May 3rd, 2024.

In preparation, Phoenix Wallet advised its US users to empty their wallets and not to close channels forcefully to avoid high fees. They provided specific instructions for users to empty their wallets through the app settings.

Additionally, zkSNACKs has also banned US citizens from accessing its Wasabi crypto wallet and related products and services. While they didn't give a specific reason, they mentioned recent announcements by US authorities as a factor.

It remains to be seen if these exits could lead to more crypto businesses leaving the US due to unclear regulatory frameworks. With the SEC cracking down on crypto exchanges and the Department of Justice pursuing developers, crypto enthusiasts are hoping for legislative intervention from the US Congress.

In other news, the cryptocurrency market has performed well, with a 2.70% increase in market cap. Ethereum and Solana lead among the top 10 tokens, with gains of 6.20% and 5.34%, respectively. Bitcoin, the most valuable digital asset, now trades at $63,855, rising by 1.46% within the same time frame.

Conclusion:

Phoenix Wallet and other crypto companies are making changes due to US regulations, raising concerns about the future of crypto businesses in the country. Meanwhile, the cryptocurrency market continues to show positive growth, with Ethereum, Solana, and Bitcoin leading the way.