Wallet of Satoshi, a leading bitcoin Lightning wallet provider, has Announced its withdrawal from the US market. This move involves removing its app from the Apple and Google app stores in the United States, marking a notable change in the company’s operational approach.
This decision, although abrupt, was communicated with an assurance to existing US clients about the security and accessibility of their funds.
Wallet of Satoshi emphasized that users can transfer their holdings to alternative wallet services, ensuring that their digital assets are not disrupted. Despite this assurance, the company’s sudden exit raises questions about the underlying factors that prompted such a move.
Regulatory speculation and industry reactions
Speculation is rife about the reasons behind Wallet of Satoshi’s decision. Industry observers have pointed to the increasingly complex crypto regulatory environment in the US as a potential factor.
This conjecture gains weight considering the recent legal challenges faced by major industry players such as Binance and its former CEO, Changpeng Zhao. These incidents have highlighted the increasing scrutiny and regulatory demands within the American crypto space.
Responding to the development, John Carvalho, CEO of bitcoin software developer Synonym, He suggested that compliance with local regulations could be “too difficult a challenge” for Wallet of Satoshi.
Carvalho deduced that the decision to exit the US market could be due to the company’s “inability” or “unwillingness” to adapt to these regulatory demands.
To all those who respond by asking “why?” you should be able to figure it out.
WoS needs to comply with local regulations or laws in ways it cannot or will not.
– Juan Carvalho (@BitcoinErrorLog) November 24, 2023
The way forward for the bitcoin wallet company
Despite its withdrawal from one of the largest markets in the world, Wallet of Satoshi remains a crucial player in the bitcoin Lightning Network ecosystem. The app is known for processing a significant volume of Lightning Network payments, with projections reach more than one million transactions in November alone.
Wallet of Satoshi is on track to process more than 1.1 million Lightning payments in November.
This will be the largest month of Lightning payments in its history.
– Kevin Rooke (@kerooke) November 22, 2023
Criticism of the Satoshi Portfolio has often been centered about the custodial nature of your request. Unlike non-custodial solutions that offer users complete control over their funds, the Wallet of Satoshi app maintains control over users’ assets.
This aspect has been a source of controversy, particularly among advocates of greater user autonomy in the management of digital currencies. The company, however, has a positive outlook towards the US market.
In its statement, Wallet of Satoshi expressed hope for future developments that may allow the company to resume its services in the United States. The firm noted:
We understand this may be disappointing news and we share your frustration. We are hopeful that future developments will allow us to review and possibly resume our operations in the US.
This optimism suggests a possible return if the regulatory landscape evolves to accommodate the operating model of Wallet of Satoshi and similar crypto services.
Featured image from iStock, chart from TradingView
