Lightning Network app Wallet of Satoshi ends support for U.S. customers

Wallet of Satoshi, a fashionable wallet for usage with with Bitcoin’s Lightning Network, announced the extremity of U.S. enactment connected Nov. 24.

The institution said that it had decided to region its app from the U.S. and Google app stores and halt serving American users going forward.

The announcement lone broadly described the reasons for the change, stating:

“This determination doesn’t travel lightly. Our committedness to providing a secure, user-friendly, and compliant level globally is unwavering. Our apical precedence is the information and interests of our customers and our company.”

Wallet of Satoshi different said that it hopes to yet resume U.S. operations successful the future. It added that U.S. users volition proceed to person entree to funds that presently beryllium successful their wallet, allowing for transactions and withdrawals.

Regulatory hazard whitethorn beryllium crushed for takedown

Many members of the crypto assemblage person speculated that, due to the fact that of the U.S.-specific argumentation change, the determination is simply a effect to American regulations.

Wallet of Satoshi is simply a custodial wallet, meaning that the supplier centrally holds and manages funds connected behalf of wallet customers. By contrast, the authoritative Bitcoin wallet and assorted different Lightning Wallets are non-custodial wallets, meaning that they let users to support implicit power of their cryptocurrency equilibrium on-chain.

Wallet of Satoshi’s centralized and custodial exemplary apt puts the institution astatine hazard of regulatory enforcement, akin to cryptocurrency exchanges that negociate funds connected behalf of their users. Many specified exchanges person precocious faced regulatory action.

Prior to the announcement, immoderate assemblage members speculated that Google and Apple had banned the wallet from their respective app stores. However, Wallet of Satoshi’s latest update, combined with the information that the app is disposable connected planetary versions of each app store, suggests that the stores did not enforce a ban.

Another commentator, Kevin Rooke, observed that the app precocious experienced precocious volumes, handling implicit 1.1 cardinal of Lightning transactions November.

The station Lightning Network app Wallet of Satoshi ends enactment for U.S. customers appeared archetypal connected CryptoSlate.