GameStop will stop support for its crypto wallets, citing ‘regulatory uncertainty’

Gaming retail company GameStop has announced it will remove its digital wallets from the market starting in November, citing “regulatory uncertainty of the crypto space.”

In a notice posted to its website, GameStop said iOS and Chrome Extension wallets will no longer be available starting on Nov. 1, advising users to ensure they have access to their secret passphrases by Oct. 1. The wallets, launched in May 2022, allow users to manage cryptocurrencies and nonfungible tokens, or NFTs.

<em>GameStop notice to users of its crypto wallets. Source: GameStop</em>

GameStop, once known primarily for its brick-and-mortar retail stores offering trade-ins of used consoles and games, became the center of media attention in January 2021 when a group of retail investors from Reddit caused hedge fund managers to lose billions on short positions. The firm has since launched its own NFT marketplace and announced plans to use digital assets and Web3 applications as avenues for growth.

Related: GameStop to drop crypto efforts as Q3 losses near $95M

It’s unclear to which aspects of “regulatory uncertainty” the company was referring. GameStop is headquartered in the United States, where lawmakers and regulators have taken various approaches to tackling the growth of crypto and blockchain. The U.S. Securities and Exchange Commission has brought several lawsuits against crypto firms in the country, and many court cases between blockchain companies and their executives are ongoing.

Cointelegraph reached out to GameStop for comment but did not receive a response at the time of publication.

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