Another Bitcoin wallet leaves the US citing regulatory pressure

Yet another Bitcoin wallet with privacy features has decided to leave the United States. The current project is Wasabi walletleaving Americans without access to all their services.

According to an announcement published on the wallet’s official website on Saturday evening (27), the ban applies to US citizens and residents.

“If you are a U.S. citizen or resident of the United States, you are not permitted to visit the Wasabi website, download Wasabi Wallet, or use Wasabi’s CoinJoin feature.”says the ad.

Wallet developers quote “recent announcements from US authorities” as the reason behind the blockade, a move that sees Wasabi join a growing list of platforms adjusting their services due to prosecution by US authorities.

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Why Are Bitcoin Wallets Leaving the US?

In addition to Wasabi, Phoenix Wallet also announced its departure from the United States last week. The reason may have to do with the regulatory burden in the US regarding privacy tools.

On Wednesday (24), as reported by Livecoinsthe founders of Samourai walletanother wallet with privacy features, were arrested on charges of conspiracy to commit money laundering and operating an unlicensed money transfer business.

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The two developers were accused of facilitating the laundering of more than $2 billion through the wallet’s Whirlpool feature, which mixes cryptocurrencies and makes tracking difficult.

Despite providing a legitimate resource that can be used by anyone, cryptocurrency mixers are in the crosshairs of authorities for being used by criminals.

Unable to arrest people using such services, authorities are therefore focusing on property developers, arresting many of them and imposing heavy fines.

In a recent document filed in a US court, prosecutors stated that Tornado Cash, another privacy tool, “It was a commercial company that made a profit”That is, the justice department believes that developers make money from fees when offering mixing services.

“The success of the Tornado Cash service, which enabled the laundering of huge amounts of dirty money, shows the need for restrictions.”they added.

ACINQ, the company behind Phoenix Wallet, which focuses on Lightning Network resources, has clearly pointed out regulatory doubts plaguing the United States regarding its decision to leave the country, indicating that it will soon communicate about the “potential consequences” of the decision.

According to the company, the simple fact that it has a node on the Lightning Network – Bitcoin’s second-layer network that enables cheaper and faster transactions – could be a reason to be attacked by the authorities.

“Recent announcements from US authorities cast doubt on whether self-custodial wallet providers, Lightning service providers or even Lightning nodes can be considered money services businesses and regulated as such.”

In addition to wallets that offer mixer features, MetaMask has also been accused by the SEC of operating as an unregistered broker, especially with regard to its products MetaMask toggles, which allows the exchange of one cryptocurrency for another.

At the same time, the FBI published a statement stating that investors should not use identity-free (KYC) platforms, threatening to confiscate cryptocurrencies from anyone using such services.

While some laymen may wonder: “how are they going to seize if there is no KYC”the FBI explains that the seizure does not happen in the user’s wallet, but during operations on the platform.

In other words, if you use a platform without KYC and it is the target of an FBI operation, your cryptocurrencies on the platform will be seized and you will have no right to claim them.

Finally, the authorities seem to be waging a war on privacy and the first phase is to cause panic among developers and users. The next steps, for those following this site, are more cousins ​​and should arrive by 2030.

Source: Live Coins