Major Bitcoin Lightning wallet provider quits US market
Quick Take
- Wallet of Satoshi has removed itself from the U.S. Apple and Google app stores, confirming it will not serve customers in the country going forward.
- The popular Bitcoin Lightning app did not specify the reason for the decision but sought to assure existing customers in the U.S. that their funds were safe and available to transfer to another wallet.
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Lightning wallet provider Wallet of Satoshi has removed its app from the U.S. Apple and Google app stores, with the firm clarifying that it “will not serve U.S. customers going forward.”
The Wallet of Satoshi team did not specify any particular reasons for the decision, stating it understood the news was disappointing for U.S. customers. The app remains available for download in other countries.
The Bitcoin Lightning app sought to assure existing users in the U.S. that their funds were accessible and can be withdrawn and transferred to another wallet service.
Users earlier speculated that the app may been banned in the U.S. as a result of the regulatory environment surrounding the crypto industry in the country, especially given the recent legal action taken against Binance and its former CEO, Changpeng Zhao. The firm has come out saying it was its decision to remove the app.
“Wallet of Satoshi needs to comply with local regulations or laws in ways that it cannot, or does not want to,” John Carvalho, CEO of Bitcoin software developer Synonym, said in response.
The firm remains hopeful of a return in the country with future developments. “We’re hopeful that future developments will allow us to revisit and possibly resume our operations in the U.S.,” it added
One million Lightning transactions and near record capacity
Wallet of Satoshi is one of the most popular Bitcoin Lightning wallets and projected to process more than a record one million Lightning Network payments in November. Nonetheless, the firm has previously faced criticism for the custodial nature of its app, which retains control over users’ funds, unlike non-custodial solutions that allow users to maintain full control over their bitcoin.
Wallet of Satoshi's decision to exit the U.S. market coincides with the Lightning Network’s capacity rising back to all-time highs in both U.S. dollar and bitcoin terms, according to The Block’s data dashboard.
U.S. dollar capacity has jumped 67% over the last two months to reach $207 million, just shy of the $215 million record set in November 2021 at the peak of the bull market. Bitcoin capacity rose 20% over the same period to hit 5,530 BTC, slightly below the previous 5,640 BTC record set in July.
Wallet of Satoshi did not immediately return a request for comment from The Block.
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