Gamestop, the well-known American retailer specializing in video game sales, has announced its plan to discontinue its iOS and Chrome Extension crypto wallets on November 1, 2023. The decision comes in response to the uncertain regulatory landscape surrounding the crypto space.
The company’s online crypto hub, “nft.gamestop.com,” now displays an announcement explaining the removal of its Web3 wallet. Gamestop had shown interest in the non-fungible token (NFT) and Web3 domain back in May 2021, and later in May 2022, it launched an Ethereum-based wallet utilizing Loopring’s zk-rollup technology. The Gamestop NFT Marketplace was introduced in November 2022 on Immutable X, showcasing Web3 games and NFTs.
While Gamestop did not specify the exact regulations leading to the suspension of its Web3 wallet venture, 2023 has seen increased regulatory enforcement, especially in the United States. The U.S. Securities and Exchange Commission (SEC) has categorized numerous crypto assets as securities and has raised concerns about unregistered brokerage services on some exchanges.
This regulatory environment has prompted other platforms like Robinhood, Etoro, and Bakkt to remove certain crypto assets from their offerings. The Gamestop Wallet is a self-custodial wallet, and the company urges its customers to ensure they have access to their secret passphrase by October 1, 2023. With the passphrase, users can recover their accounts in any compatible wallet.
Frequently Asked Questions (FAQs) about regulatory uncertainty
Q: Why is Gamestop eliminating its crypto wallets?
A: Gamestop is discontinuing its crypto wallets on November 1, 2023, in response to the existing “regulatory uncertainty of the crypto space.” The specific regulations prompting this decision were not disclosed, but 2023 has seen increased regulatory enforcement, especially in the United States.
Q: What is Gamestop’s crypto hub “nft.gamestop.com”?
A: “nft.gamestop.com” is Gamestop’s online crypto hub where they offered their Web3 wallet and NFT Marketplace. However, due to the regulatory challenges in the crypto space, the company has decided to remove its wallet offering.
Q: How can users recover their accounts after the wallets are removed?
A: Gamestop’s Web3 wallet is a self-custodial wallet, and users are advised to ensure they have access to their secret passphrase by October 1, 2023. With the passphrase, users can recover their accounts in any compatible wallet.
Q: What other platforms have faced similar regulatory challenges?
A: Other platforms like Robinhood, Etoro, and Bakkt have also encountered regulatory issues and have removed certain crypto assets from their offerings.
Q: When did Gamestop enter the Web3 and NFT domain?
A: Gamestop first signaled its interest in the Web3 and NFT domain in May 2021. It launched its Ethereum-based wallet in May 2022 and the Gamestop NFT Marketplace on Immutable X in November 2022.
More about regulatory uncertainty
- Gamestop to Sunset Crypto Wallet Amid Regulatory Uncertainty; Advises Users to Secure Passphrase
- Gamestop’s Crypto Hub “nft.gamestop.com”
- U.S. Securities and Exchange Commission (SEC) Official Website
- Loopring’s zk-rollup technology
- Immutable X
- Regulatory challenges in the crypto space
- Robinhood’s regulatory challenges
- Etoro’s regulatory challenges
- Bakkt’s regulatory challenges