GameStop to stop supporting its crypto wallet.

GameStop to stop supporting its crypto wallet.

GameStop Ends Support for Crypto Wallet Offering, Citing Regulatory Uncertainty

GameStop

GameStop, the popular video game retailer, has announced that it will no longer support its crypto wallet offering starting from November 1st. The company cited “regulatory uncertainty of the crypto space” as the reason behind its decision. This move was communicated to customers through a notification placed on the GameStop Wallet homepage. As part of the discontinuation, the company will be removing its iOS and Chrome Extension wallets from the market. GameStop advised users who have access to their Secret Passphrase, a security feature, to retrieve it by October 1st. By doing so, they would retain the ability to recover their account in any compatible wallet.

The current supported wallet providers for GameStop’s cryptocurrency offering are MetaMask and WalletConnect. However, it appears that GameStop is looking to distance itself from the crypto space, as indicated in a conference call discussing its third-quarter results in December 2022.

During this call, Matt Furlong, who was the CEO at the time, highlighted the company’s proactive approach to minimizing cryptocurrency exposure throughout the year. Furlong stated that GameStop did not possess a significant balance of any token and emphasized that they have not risked stockholder capital in the crypto space. Despite this cautious stance, GameStop still believes in the long-term potential of digital assets within the gaming industry.

The GameStop crypto wallet offering was initially launched in May 2022, aiming to provide gamers and other users with a seamless way to store, send, receive, and use cryptocurrencies and NFTs (non-fungible tokens) directly within their web browsers.

The move to end support for the crypto wallet offering comes amidst increased scrutiny of the crypto space by regulatory agencies such as the SEC (Securities and Exchange Commission). The SEC has recently taken legal action against major crypto exchanges Coinbase and Binance, accusing them of violating U.S. securities laws.

SEC Chairman Gary Gensler expressed his views on the crypto market in a June 6th interview with CNBC. He stated, “Look, we don’t need more digital currency. We already have digital currency. It’s called the U.S. dollar. It’s called the euro or it’s called the yen; they’re all digital right now.”

While GameStop did not immediately respond to requests for comment from ANBLE, its decision to end support for its crypto wallet offering reflects the challenges and uncertainties faced by companies in the current regulatory landscape of the crypto space.

In conclusion, GameStop’s decision to discontinue its crypto wallet offering highlights the regulatory uncertainties surrounding the cryptocurrency market. As the SEC and other regulatory bodies increase their scrutiny, companies like GameStop are reevaluating their involvement in the crypto space. Despite the discontinuation, GameStop remains optimistic about the long-term potential of digital assets in the gaming industry.