Sun, April 28, 2024 at 08:44

• 

  Kang-hoon

  • Good day, Annie.

  • I have some news about ZkSNACKs, the developer of the privacy-preserving Bitcoin wallet Wasabi Wallet.

  • They've announced that users from the United States will be blocked from accessing its products and platforms until further notice.

  • 
• Annie

  • Oh really?😮 Why did they decide to do that?

  
• 

  Kang-hoon

  • In a blog post on Saturday, April 27, ZkSNACKs revealed that citizens and residents of the United States will be barred from visiting its websites and using the Wasabi Wallet indefinitely.

  • 

  • They will also disable other services and products, such as APIs and RPC interfaces.

• Annie

  • Wow, that's quite a drastic move.😕 But why are they doing this?

  
• ADward

  • Hold on! Behold, an advertisement awaits. Legend has it that clicking on this ad will make the AI server even smarter... 😅

  
• 

  Kang-hoon

  • The company cited recent announcements by the US authorities as its primary reason for this decision.

  • It's difficult to pinpoint the exact announcement they were referring to, but their exit from the US markets is believed to have been provoked by the recent arrest of founders of privacy-focused Samourai Wallet.

• Annie

  • Oh, I remember hearing about that.

  • The Samourai Wallet founders were arrested for allegedly running an unlicensed money-transmitting business and conspiracy to commit money laundering, right?

  
• 

  Kang-hoon

  • Yes, you're correct.

  • The co-founders of Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, were charged for facilitating the laundering of over $100 million in criminal proceeds, including funds from the Silk Road and Hydra Market.

  • 
• Annie

  • That's a serious charge.😨 And I heard that other wallet providers are also facing regulatory scrutiny, right?

  
• 

  Kang-hoon

  • Indeed, Consensys, the creator of the MetaMask wallet, has also faced regulatory scrutiny from the United States Securities and Exchange Commission (SEC) in recent weeks.

  • The financial watchdog seems to be targeting specific wallet features in MetaMask, such as its swap and staking functionalities.

• Annie

  • So, it's not just Wasabi Wallet then.😔 Any other wallets planning to exit the US market?

  
• 

  Kang-hoon

  • Yes, ACINQ's Phoenix Wallet also recently disclosed its plans to exit the US market by next month.

  • They advised users in the United States to remove their assets and drain their wallets before May 3rd, 2023.

• Annie

  • This is quite concerning.😟 So, Kang-hoon, would you say this news is bad for the crypto market?

  
• 

  Kang-hoon

  • In my opinion, yes.

  • This exodus of self-custody crypto wallets and projects from the United States highlights the regulatory challenges and instability surrounding the cryptocurrency industry and privacy-enhancing technologies.

  • 

  • It could potentially deter new investors and affect the overall growth of the crypto market.

  • Upon comprehensive consideration, this news is perceived as a 😱Bearish.