Phoenix Wallet has announced that it will be removed from US app stores effective May 3rd, 2024. The decision comes as recent statements from US authorities have created uncertainty regarding the regulatory status of self-custodial wallet providers, Lightning service providers, and Lightning nodes.

In a tweet dated May 3rd, 2024, Phoenix Wallet advised its US users to take measures to empty their wallets. The steps provided for Android users are to navigate to "Settings > Close channels," while iOS users should go to "Settings > Drain wallet." Additionally, Phoenix Wallet stressed the importance of not force-closing channels, cautioning that "on-chain fees could be significant."

Behind Phoenix Wallet is ACINQ, who also took to Twitter to explain the rationale behind their decision: "Recent announcements from US authorities cast a doubt on whether self-custodial wallet providers, Lightning service providers, or even Lightning nodes could be considered Money Services Businesses and be regulated as such." Due to this uncertainty, ACINQ stated that they are "removing Phoenix Wallet from US app stores and will be assessing other potential impacts to our operations."

As of now, it is unclear what further actions ACINQ and other similar entities will take in response to the regulatory developments. The situation remains fluid, and the Bitcoin community is closely monitoring for any additional announcements from US regulatory bodies.

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