Restriction imposed on American citizens by well-liked Bitcoin wallet

The provider of Wasabi Wallet, zkSNACKs, has announced that it will no longer allow U.S. citizens and residents to use its services. This decision comes in response to a crackdown by U.S. regulators on Bitcoin wallets. Wasabi Wallet is a popular Bitcoin wallet known for its focus on privacy solutions.

zkSNACKs has implemented measures to block U.S. citizens and residents from accessing its websites, downloading and using Wasabi Wallet, and using any related products and services. This includes APIs and RPC interfaces. The prohibition applies to individuals with a United States passport or IP address.

The recent actions taken by U.S. authorities have raised concerns about privacy and Bitcoin wallets. On April 24, the FBI seized the website of Samourai Wallet, a direct competitor to zkSNACKs. The developers were also arrested. The following day, the FBI issued a warning against “cryptocurrency money transmitter businesses.” These events, along with court decisions related to Tornado Cash, have created uncertainty about the classification of “money transmitter businesses” and the regulation of Bitcoin and cryptocurrency wallets.

As a result, ACINQ, a Lightning Network service provider and developer of Phoenix Wallet, announced on April 26 that it would be leaving the United States. Wasabi Wallet made its decision to block U.S. citizens and residents shortly after.

The recent actions by U.S. authorities have introduced regulatory uncertainties for Bitcoin wallet and privacy service providers in the country. This has led some companies to leave the U.S. or prohibit its citizens and residents from using their services. The long-term demand for Bitcoin in the U.S. may be affected as a result.