Just In: GameStop To Discontinue Crypto Wallet Operations; Here’s Why

Crypto News: United States based video game retailer GameStop decided to wrap up its crypto wallet operations, in reaction to the ongoing onslaught of enforcement actions against crypto businesses by US regulators. The company cited regulatory uncertainty for the decision, which will take effect from November 1, 2023. The wallet for cryptocurrencies and non-fungible tokens (NFTs) was launched just around an year ago in May 2022. Following this, the GameStop NFT Marketplace was also introduced.

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Interestingly, Bloomberg reported that the company had not mention any statistics or updates about the crypto wallet business of the NFT marketplace. This indicates that the retailer had been contemplating on wrapping up the crypto wallet business, considering the high uncertainty around regulation in the industry. In recent times, Binance and Coinbase, which are the biggest names in the crypto market ecosystem were targeted in anti-crypto enforcement actions by the U.S. Securities and Exchange Commission (SEC).

GameStop Crypto Wallet Shut Down

According to the company’s website, the GameStop iOS and Chrome extension crypto wallets will be removed on November 1, 2023. However, the retailer is yet to explain further on the ‘regulatory uncertainty’ reason for discontinuing the service.

Meanwhile, the GameStop Corp stock price took a 2.5% drop on Tuesday while the S&P 500 Index is down by 0.24%. Earlier, CoinGape reported that the fear, uncertainty and doubt (FUD) also led to PaySafe, Binance’s European banking partner, announced it was terminating embedded wallet solutions to the crypto exchange. This came around three weeks after the world’s largest crypto exchange was sued by the US SEC over securities laws violation.

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