Wallet of Satoshi, one of the world’s leading Bitcoin and Lightning Network wallets, announces its withdrawal from the Apple App Store and Google Play Store in the United States, raising questions about compliance challenges and the future of cryptocurrency services under strict regulatory regimes.
Wallet of Satoshi abandons US
This morning, Australia’s Wallet of Satoshi announced its withdrawal from the Apple App Store and Google Play Store for US residents.
Recognized worldwide, Wallet of Satoshi is a wallet 100% dedicated to the Lightning Network and is among the most popular internationally. It has played a key role in the adoption of Bitcoin as a means of payment, including for the world’s poorest populations.
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
The company managing this portfolio is also responsible for the 2nd most connected Lightning node on the network, with almost 2000 channels, and the 9th node with the highest transfer capacity, with over 228 BTC.
For existing users in the USA, Wallet of Satoshi ensures that they will always have full access to their Bitcoin funds. Users will be able to withdraw and transfer their funds unhindered to another wallet, ensuring continuity of access to their assets.
Why has Wallet of Satoshi made this decision?
Wallet of Satoshi’s recent decision marks a major strategic shift for both the company and its American customers. This announcement, although sudden and worrying for American users, is in fact in line with a trend also observed among its competitors.
For example, Blink Wallet, a direct competitor, is also unavailable to US citizens. On the other hand, Phoenix Wallet, which targets an audience more familiar with the specifics of the Lightning Network, remains accessible in the United States. But for how long?
While the reason for this withdrawal has not yet been disclosed, it could be attributed to the complexity of legislation in the United States, perceived as too restrictive. This legislation notably involves the installation of a customer identification system, known as KYC (Know Your Customer).
Several factors may explain Wallet of Satoshi’s reluctance to comply with this requirement: firstly, the company sees it as contrary to Bitcoin’s fundamental principles. Secondly, compliance seems impractical for the company. Finally, the costs associated with this regulation could be significant and unproductive for their development.
With the withdrawal of the Wallet of Satoshi from the U.S., the question arises: will other industry players have to follow suit?
