GameStop Withdraws Digital Wallets

GameStop has announced that it will withdraw its digital wallets from the market beginning in November, citing the “regulatory uncertainty of the crypto space.”

In a notice posted to its website, GameStop announced that iOS and Chrome Extension wallets will no longer be available as of November 1.

It advised users to ensure they had access to their private passphrases by October 1. The wallets, released in May 2022, enable users to manage cryptocurrencies and NFTs.

A bunch of retail investors on Reddit were responsible for hedge fund managers losing billions of dollars on short positions in January 2021, which brought GameStop to the forefront of the spotlight.

In the past, GameStop was primarily known for its brick-and-mortar stores that offered trade-ins of used consoles and games.

Since that time, the company has established its very own NFT marketplace and made public announcements concerning expansion goals, including digital assets and Web3 apps.

It is not entirely apparent what components of “regulatory uncertainty” the company refers to.

Lawmakers and regulators in the United States, where GameStop’s headquarters are located, have tried a variety of measures to prevent the rise of cryptocurrencies and blockchains.

The U.S. Securities and Exchange Commission (SEC) has filed several lawsuits against crypto firms in the United States, and numerous ongoing court cases involve blockchain companies and their executives.