Video game retailer GameStop Corp. (NYSE: GME) on Monday said that it will no longer support cryptocurrency wallets due to regulatory uncertainty in the United States.
What Happened: This decision comes just a year after the company rolled out the service.
GameStop's website notes that the removal of its iOS (NASDAQ: AAPL) and Chrome Extension (NASDAQ: GOOG) (NASDAQ: GOOGL) wallets from the market will take place on November 1, 2023. However, customers will still have access to their wallets until October 1.
The wallets, which were initially introduced to allow users to manage cryptocurrencies and non-fungible tokens (NFTs) across decentralized apps and enable transactions on GameStop's NFT marketplace, will no longer be available for use.
Cryptocurrency wallets, provide users with a convenient way to store and manage their digital assets like Bitcoin, Ethereum and Dogecoin.
This move comes as GameStop faced a series of challenges in the crypto space. In December, the company had to lay off several software engineers who were working on the development and maintenance of its crypto wallet.
"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.
Why It Matters: The regulatory landscape surrounding cryptocurrencies has become increasingly complex, with U.S. regulators and lawmakers taking a strong stance against crypto-related companies. Some notable examples include lawsuits against Coinbase (NASDAQ: COIN) and Binance by the Securities and Exchange Commission (SEC).
In other news, a Coinbase spokesperson dismissed a previous report suggesting that the SEC had advised Coinbase to delist certain assets prior to initiating a lawsuit against the company.