Leading video game retailer GameStop (GME) said it will remove its support for crypto wallets citing regulatory uncertainty in the United States, just one year after rolling out the service.
"Due to the regulatory uncertainty of the crypto space, GameStop has decided to remove its iOS and Chrome Extension wallets from the market on November 1, 2023," according to its website. Customers will have access until October 1.
The wallets, which were rolled out just about a year ago, allow users to manage crypto and non-fungible tokens (NFTs) throughout decentralized apps and enable transactions of GameStop's NFT marketplace.. In December, the company conducted layoffs which included multiple software engineers working on its crypto wallet.
The move comes after regulators and lawmakers in the U.S. have doubled down on its efforts to crack down on crypto-related companies in recent months, including Coinbase and Binance, which both were sued by the Securities and Exchange Commission (SEC). The regulatory crackdown also saw the popular trading platform Robinhood (HOOD) delisting all the tokens that were named as securities in recent (SEC) lawsuits.
As a result of intensifying regulations in the U.S., multiple companies have moved overseas to focus on their business there until there’s more regulatory clarity in the region.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.