Gamestop to Sunset Crypto Wallet Amid Regulatory Uncertainty; Advises Users to Secure Passphrase

Gamestop, the American retailer known for specializing in video game sales, has announced its intention to eliminate its iOS and Chrome Extension crypto wallets on November 1, 2023. The company cited the decision as a response to the existing “regulatory uncertainty of the crypto space.”

Gamestop to Discontinue iOS and Chrome Extension Wallets: Regulatory Challenges Cited

Visitors to Gamestop’s online crypto hub, “nft.gamestop.com,” are now met with an announcement declaring the removal of the firm’s Web3 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,” the statement from Gamestop explains.

The company first signaled its interest in the non-fungible token (NFT) and Web3 domain in May 2021. A year later, in May 2022, Gamestop launched the firm’s Ethereum-based wallet, employing Loopring’s zk-rollup technology. In November 2022, several months later, the Gamestop NFT Marketplace was launched on Immutable X, showcasing Web3 games and NFTs.

Gamestop remained vague about the specific regulations prompting the halt of its Web3 wallet venture, but 2023 has marked a year of substantial regulatory enforcement, especially in the United States.

The U.S. Securities and Exchange Commission (SEC) has categorized dozens of crypto assets as securities and maintains that some exchanges are conducting unregistered brokerage services.

This regulatory atmosphere has motivated Robinhood, Etoro, and Bakkt to remove several crypto assets from their platforms. The Gamestop Wallet is a self-custodial wallet and the web portal’s announcement notes that people can leverage their secret passphrase to recover their accounts.

“We advise that all customers ensure that they have access to their secret passphrase by October 1, 2023,” Gamestop disclosed. “Any customer with access to their secret passphrase has the ability to recover their account in any compatible wallet.”

What do you think about Gamestop’s decision to remove its crypto wallet? Share your thoughts and opinions about this subject in the comments section below.