Bitwage, a crypto payroll company, announced in an email to customers on July 5 that it will disable USD Coin (USDC) payments for US residents.
Over the past month, U.S. financial regulators have stepped up regulatory scrutiny of the crypto space, suing major crypto companies such as Binance and Coinbase.
Users who do not remove their stablecoins by July 13 will have their wallets and bank accounts reset, according to a warning from crypto payment firms. He went on to say: "If reset, you will need to set up your wallet and bank account again before you can deposit your next paycheck."
Meanwhile, the company noted that US citizens will still be able to receive payments in other crypto assets such as Bitcoin (BTC), and stablecoin alternatives such as Tether USDT, and DAI.
Bitwage said the new measures will not affect citizens outside the United States. Less than a week prior, the business announced a collaboration with Vibrant to "make USD stablecoin payments seamless and fee-free for remote workers around the world."
Matt Alborg, the market research adviser at Bitrefill, noted that the move could be positive for bitcoin as utilities have seen a decline in the use of the flagship asset by utilities in recent years due to the spread of stablecoins. “If restrictions on stablecoins are tightened, the pendulum will likely return to BTC,” Ahlborg added.
To date, Bitwage has processed more than $200 million in wage payments and has over 50,000 workers registered on the platform, according to the company's website.
The company is headquartered in San Francisco and operates payroll services in the United States, Europe, Latin America, and Asia.
