Wallet of Satoshi halts U.S. operations amid regulatory crackdown
Wallet of Satoshi, a provider of Bitcoin Lightning wallets, has voluntarily withdrawn its app from the U.S. Apple and Google app stores and will cease serving U.S. customers.
The company has not provided explicit reasons for its exit but acknowledged the disappointment this move may cause among its American users. The app will remain accessible to users in other countries.
The decision comes amidst a turbulent regulatory climate for crypto entities in the U.S., highlighted by recent legal actions against giant players like Binance. While speculation arose that the app may have been banned due to these regulatory pressures, Wallet of Satoshi clarified it was their choice to remove the app.
“We’ve made the difficult decision to remove our app from the U.S. Apple and Google app stores, and will not serve U.S. customers going forward. This decision doesn’t come lightly. Our commitment to providing a secure, user-friendly, and compliant platform globally is unwavering. Our top priority is the safety and interests of our customers and our company,” the statement reads.
For current U.S. users, the firm reassured that their funds remain accessible and can be transferred out of the service. Despite the withdrawal, Wallet of Satoshi holds onto the possibility of returning to the U.S. market if future developments in regulations become favorable.
To our valued Wallet of Satoshi community in the United States of America,
We’ve dedicated ourselves to providing the best Bitcoin experience with Wallet of Satoshi, being at the forefront of Lightning usability and adoption. However, we’ve made the difficult decision to remove…
— Wallet of Satoshi (@walletofsatoshi) November 24, 2023
This development is particularly notable given that Wallet of Satoshi was on track to process over a million Lightning Network payments in November. This was its largest month ever in terms of transactions, which suggests that the withdrawal is not due to a lack of business success or demand.The timing also coincides with a class-action lawsuit filed against Apple by users of PayPal, Venmo, and Block Cash App, alleging Apple’s anti-competitive practices around cryptocurrency payments on iOS. Apple has been known to delist crypto-related apps in the past, which has added another layer of difficulty for crypto platforms wishing to operate within the ecosystem of the App Store.