zkSNACKs Enforces Ban on US Users for Wasabi Wallet Access

The Wasabi Wallet website said on April 27 that an immediate ban will be imposed on all nationals and residents of the United States, regardless of whether they own a U.S. passport or are permanent residents. Access to certain Wasabi Wallet-related websites and services is prohibited.

The company that created Wasabi Wallet, zkSNACKs, has taken action to prevent nationals and residents of the United States from using its platforms, which include the main website and related domains for Wasabi Wallet. The wallet may be downloaded and used, including coin-join, without being banned.

The move, the developer explained, is the result of “recent announcements by U.S. authorities,” which fits in with a larger pattern of regulatory scrutiny that crypto platforms are subject to.

Ripple Effects Across the Crypto Sphere

The move by zkSNACKs follows a wave of adjustments within the crypto industry in response to heightened regulatory attention from U.S. authorities. Phoenix Wallet, for instance, declared its cessation of operations for U.S. residents, coinciding with the removal of its app from U.S. app stores.

ACINQ, the company behind Phoenix Wallet, emphasized concerns raised by U.S. government statements regarding potential regulations affecting self-custodial wallets and Lightning service providers.

Recent indictments targeting the founders of Samourai Wallet, accusing them of facilitating illegal transactions exceeding $2 billion, underscore the escalating scrutiny of crypto wallets by federal prosecutors in New York. This crackdown signifies a broader regulatory push aimed at addressing illicit activities within the crypto space.

The ban has stirred debate within the crypto community, with advocates highlighting privacy rights in alignment with Bitcoin’s core principles. As regulatory pressures mount, discussions surrounding the balance between privacy and regulatory compliance continue to evolve.