Bitcoin Lightning wallet provider, Wallet of Satoshi, will no longer serve US customers
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Wallet of Satoshi, a popular brand that provides Bitcoin Lightning wallets, has decided to withdraw its service from the US. The firm has voluntarily withdrawn its app from both the Google Play Store and Apple App Store, and it intends to stop servicing US customers amid a regulatory crackdown.
US regulatory crackdown is the most likely reason for the departure
While the company did not provide a specific reason for its decision to abandon the US market, it did acknowledge the disappointment that its move would result in among the American users of its wallet. However, with the exception of the US, the wallet app will remain as functional as ever in other countries.
Despite the fact that the firm did not say why it made the move, the timing of the decision leaves little room for speculation. The US is seeing the continuation of the regulatory crackdown on crypto companies, which took a new turn last week when reports said that the US Securities and Exchange Commission filed a new crypto exchange lawsuit, this time against Kraken.
Previously, in early June, the SEC filed similar lawsuits against Binance and Coinbase. While the regulator had to deal with the pressure regarding Bitcoin spot ETFs ever since, the delaying of the ETF decisions left it with some room to continue the crackdown.
Furthermore, last week, the lawsuit against Binance and its CEO led to the ruling that the exchange must pay a $4.3 billion fine, while its CEO has to step down and permanently distance himself from running the exchange.
Wallet of Satoshi is leaving the US voluntarily
Wallet of Satoshi has not yet found itself targeted by the SEC or any other US regulator, despite recent speculation that it was potentially banned. Its team clarified that the removal was their own decision, even though they stressed that it does not come lightly.
The company’s statement says “Our commitment to providing a secure, user-friendly, and compliant platform globally is unwavering. Our top priority is the safety and interests of our customers and our company.”
To our valued Wallet of Satoshi community in the United States of America,
We've dedicated ourselves to providing the best Bitcoin experience with Wallet of Satoshi, being at the forefront of Lightning usability and adoption. However, we've made the difficult decision to remove…
— Wallet of Satoshi (@walletofsatoshi) November 24, 2023
The company also assured its US customers that their funds remain accessible and that they can transfer them out of the wallet at any time. Wallet of Satoshi also noted that the company might return to the US market in the future, provided that upcoming developments in regulation become favorable.
Given the fact that Wallet of Satoshi processed over a million LN payments in November alone, its departure from the US is likely to have a strong impact on the users’ ability to easily process LN transactions. Even though November was the largest month for transactions so far, this growth suggests that the decision to leave does not come due to a lack of demand or the wallet’s business success.
The regulatory constriction continues. This will be a continuing pattern. Prepare accordingly.
— Autism Capital 🧩 (@AutismCapital) November 24, 2023
