GameStop, the renowned video game retailer, has announced its decision to remove support for crypto wallets, citing the uncertainty surrounding cryptocurrency regulations in the United States. The move comes merely one year after the company introduced the wallet service.
According to the statement on its website, GameStop will discontinue its iOS and Chrome Extension wallets from the market starting November 1, 2023. Customers will have access to the wallets until October 1.
The crypto wallets, which were initially launched just a year ago, allowed users to manage cryptocurrencies and non-fungible tokens (NFTs) across decentralized applications. Furthermore, they facilitated transactions on GameStop’s NFT marketplace. However, in December, the company conducted layoffs, which included software engineers responsible for the development of the crypto wallet.
The decision comes amid heightened scrutiny from regulators and lawmakers in the United States, who have been tightening their grip on crypto-related companies. Notably, companies like Coinbase and Binance faced legal actions from the Securities and Exchange Commission (SEC). Even the popular trading platform Robinhood delisted tokens labeled as securities in recent SEC lawsuits.
The increasingly stringent regulatory environment in the U.S. has prompted several companies to shift their focus overseas until there is more clarity on the regulatory landscape in the region.
As the U.S. regulatory landscape continues to evolve, the crypto industry faces uncertain times. Companies are closely monitoring the developments and adjusting their strategies to navigate through the changing regulatory landscape. For GameStop, the decision to remove crypto wallets is a significant step in response to the current regulatory challenges in the crypto space. However, the impact of this move on the wider crypto market and GameStop’s future plans remains to be seen.