zkSNACKs and ACINQ, the creators of Wasabi Wallet and Phoenix Wallet respectively, have made the decision to discontinue their services for customers in the United States. This move is in response to regulatory crackdowns on self-custodial cryptocurrency wallet providers. Both companies are concerned about the classification of self-custodial wallet providers as legitimate money service businesses, following actions taken against Consensys and Samourai Wallet. In an official statement, zkSNACKs announced that it would prohibit U.S. users from utilizing its services due to recent announcements by U.S. authorities. ACINQ also expressed concerns about regulatory developments and gave Phoenix Wallet users until May 2 to adjust to the upcoming changes. The recent focus on self-custodial wallets stems from concerns about money laundering and illicit activities. Consensys received a Wells notice from the SEC, while the co-founders of Samourai Wallet were arrested on charges of money laundering. The U.S. government has also cracked down on crypto-mixing services. In contrast, European regulators have taken a different approach, scrapping a proposed limit on crypto payments from self-hosted wallets. However, crypto exchanges in Europe still need to perform due diligence on users conducting business transactions of at least 1,000 euros.
