As Wasabi Wallet and Phoenix Leave the U.S., What’s Next for Non-Custodial Crypto?
Two Bitcoin wallets, Phoenix and Wasabi, are leaving the U.S. market due to regulatory uncertainty. This decision follows legal action against Samourai Wallet and an investigation into MetaMask by the U.S. Securities and Exchange Commission. The move is seen as a response to indications that non-custodial wallets could fall under U.S. regulatory purview. The uncertainty stems from recent announcements by U.S. authorities and court documents indicating that even decentralized, non-custodial services may need to implement KYC/AML and register with FinCEN. The decision to pull out of the U.S. has been met with understanding in the crypto community, with some expressing regret over the move. The legal actions and statements from authorities have raised the prospect that many core crypto activities beyond building wallets could fall under money transmission laws. Despite this, at least one wallet company, Zeus, has vowed to stay in the U.S. market.
