The cryptocurrency payroll startup Bitwage announced it would stop accepting payments in USD Coin (USDC) from Americans in an email to customers on July 5.
Bitwage warned that users who failed to remove their USDC allotment by July 13 would have their accounts reset. Financial officials in the United States have tightened their regulatory monitoring of the cryptocurrency industry over the past month and have filed charges against significant crypto companies, including Binance and Coinbase.
The cryptocurrency payment business said that users who do not remove the stablecoin by July 13 will have their wallets and bank accounts reset. Added was:
“If it is reset, you will have to set up your wallets and bank accounts again before we can deposit your next paycheck.”
The company also pointed out that Americans could still receive payments in other cryptocurrencies like Bitcoin (BTC) and stablecoin alternatives like CUSD (Celo), Tether’s USDT, and DAI. Bitwage claimed that the new regulation does not affect non-Americans.
Less than a week before the action, the company announced a partnership with Vibrant “to make USD stablecoin payments seamless and zero-fee for remote workers worldwide.”
Market research expert at Bitrefill Matt Ahlborg noted that this move might be advantageous for BTC because utility usage of the flagship currency has decreased recently as stablecoins have gained popularity. Increasing stablecoin limits, according to Ahlborg, “will probably cause the pendulum to swing back towards BTC.”
On its website, Bitwage claims to have registered over 50,000 workers and handled over $200 million in payroll payments. The company offers payroll service operations in the United States, Europe, Latin America, and Asia. Its headquarters are in San Francisco.
