Video game retailer GameStop has stated it will stop selling digital wallets beginning in November due to the “regulatory uncertainty of the crypto space.”
GameStop said on its website that the iOS and Chrome Extension wallets will be discontinued as of November 1, and warned customers to back up their private keys before October 1. These wallets support cryptocurrency and NFT management and will be available to the public in May 2022.
In January 2021, a group of retail investors from Reddit caused hedge fund managers to lose billions of dollars on short bets in GameStop, a company formerly known mostly for its brick-and-mortar retail locations offering trade-ins of secondhand consoles and games. Since then, the company has announced the establishment of its own NFT marketplace and hopes to expand through the usage of digital assets and Web3 apps.
The company’s reference to “regulatory uncertainty” is vague, though. In the United States, where GameStop is based, legislators and regulators have adopted a variety of stances on how to handle the proliferation of cryptocurrencies and blockchain technology. Many court actions involving blockchain companies and its executives are currently underway, and the U.S. Securities and Exchange Commission has filed multiple lawsuits against crypto firms in the country. Video game retailer GameStop has stated it will stop selling digital wallets beginning in November due to the “regulatory uncertainty of the crypto space.”