According to documents released by American regulators, non-custodial cryptocurrency wallets can be seen as offering services related to handling money. This categorization has already affected Consensy, the company behind Metamask, as well as the developers of Samourai Wallet. In order to avoid drawing unwanted attention from authorities, the developers of Phoenix Wallet and Wasabi Wallet have chosen to relocate their operations to a different jurisdiction.
“Recent statements from US authorities suggest that providers of self-custody wallets, Lightning Network software, and even Lightning Network nodes may be considered money services businesses and regulated as such,” explained the Phoenix Wallet team in a statement.
ACINQ, the company responsible for Phoenix Wallet, has informed its users in the US that they have until May 2 to withdraw their funds to alternative wallets and discontinue using the program.
These developments come on the heels of US authorities accusing the creators of Samourai Wallet of being involved in money laundering activities.