Bitwage halts USDC payments for US residents, cites ‘strict regulations’
In an email sent to customers on July 5, crypto payroll company Bitwage announced it would disable payments in USD Coin (USDC) for U.S. residents.
Over the past month, financial regulators in the U.S. have increased their regulatory scrutiny of the crypto space, bringing charges against major crypto firms, including Binance and Coinbase.
The crypto payment company warned that users who fail to remove the stablecoin would have their wallet and bank accounts reset by July 13. It added:
“If it is reset, you will have to set up your wallets and bank accounts again before we can deposit your next paycheck.”
Meanwhile, the firm noted that U.S. residents could continue to receive payments in other cryptocurrencies, such as Bitcoin (BTC) and stablecoin alternatives like CUSD (Celo), Tether’s USDT, and DAI.
Bitwage said the new measure does not impact non-U.S. residents.
The move is coming less than a week after the firm announced a partnership with Vibrant “to make USD stablecoin payments seamless and zero-fee for remote workers worldwide.”
Bitrefill’s market research consultant Matt Ahlborg pointed out that this move could be positive for BTC as utility usage of the flagship asset has waned in recent years as stablecoins gained ground. Ahlborg added, “increasing restrictions on stablecoins will likely swing the pendulum back towards BTC.”
According to its website, Bitwage has processed over $200 million in payroll payments and has over 50,000 workers registered on its platform.
The firm is headquartered in San Francisco and has payroll service operations in the U.S., Europe, Latin America and Asia.
Bitwage had not responded to CryptoSlate’s request for comment at press time.
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