Bitwage halts USDC payments for US residents, cites ‘strict regulations’ News ▸ US ▸ USDC ▸ Regulation
Bitwage halts USDC payments for US residents, cites ‘strict regulations’
Bitwage warned that users who fauiled to remove their USDC allocation by July 13 would have their accounts reset.
1 min read
Updated: Jul. 5, 2023 at 6:23 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Tether
$1.00050
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
USD Coin
$0.99984
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Dai
$0.99986
Dai (DAI) is a cryptocurrency token and operates on the Ethereum platform.
Celo Dollar
$1.00000
Celo is an open platform that makes financial tools accessible to anyone with a mobile phone.