Two companies offering self-custody wallets have decided to leave the US market due to worries about new regulations. Acinq’s Phoenix Wallet and zkSNACKs’ Wasabi Wallet will no longer be available to US users.

Acinq expressed concerns that they might have to register as Money Service Businesses under new rules, leading to more regulations. zkSNACKs also cited regulatory uncertainties as a reason for blocking US users from accessing their websites and downloading Wasabi Wallet.

This move comes amidst increased scrutiny of self-custody wallets by US authorities. The SEC's threat of legal action against MetaMask and the recent arrest of Samourai Wallet's founders have heightened tensions in the crypto community.

While the US tightens regulations, Europe is taking a different approach, with new laws focusing on stricter measures for cryptocurrency companies but not targeting non-custodial wallet software developers like MetaMask. However, the use of anonymity tools within the crypto ecosystem will be restricted under the new European law.

In summary, US regulators' actions are prompting self-custody wallet providers to exit the market, while Europe is implementing stricter regulations with a different focus. This disparity is causing frustration and uncertainty among crypto service providers globally.