Bitwage halts USDC payments for US residents, cites ‘strict regulations’

In an email sent to customers on July 5, cryptocurrency payroll firm Bitwage announced that it would be voiding payments in USD Coin (USDC) to US residents.

Over the past month, U.S. financial regulators have stepped up regulatory scrutiny of the crypto space, accusing major crypto companies such as Binance and Coinbase.

The cryptocurrency payment company has warned that users who do not delete their stablecoins will have their wallets and bank accounts reset by July 13th. He further added:

“If reset, you will need to set up your wallet and bank account again before you can deposit your next paycheck.”

Meanwhile, the company notes that US residents may continue to receive payments in Bitcoin (BTC) and other cryptocurrencies such as CUSD (Celo), Tether’s USDT, and stablecoin alternatives such as DAI. bottom.

Bitwage said the new measures will not affect non-U.S. residents.

The move comes less than a week after the company announced it. partnership Our partnership with Vibrant “enables remote workers around the world to seamlessly make payments in USD stablecoins with zero fees.”

Matt Alborg, Market Research Consultant at Bitrefill It pointed out The move could be positive for BTC, as utility usage of the flagship asset has declined in recent years as stablecoins have risen. Ahlborg added that “the pendulum will likely return to BTC when restrictions on stablecoins are tightened.”

according to it, websiteBitwage has processed over $200 million in payroll payments to date and has over 50,000 employees registered on the platform.

The company is headquartered in San Francisco and has payroll services operations in the United States, Europe, Latin America and Asia.

Bitwage did not respond of crypto slate soliciting comments at press time.

Bitwage suspends USDC payments to US residents, citing “strict regulation,” first appeared on CryptoSlate.