UK Monetary Conduct Authority (FCA) on Friday suspended the license of Wirecard Card Options (WCS), a unit of troubled Wirecard AG, which is chargeable for issuing Visa cryptocurrency debit playing cards.
It means some customers of playing cards equivalent to Crypto.com’s Mco visa debit card and Tenx’s visa debit card may not be capable to entry their funds for a time. Each the crypto-enabled playing cards are issued by the Newcastle-based WCS.
FCA stated Wirecard Card Options “is no longer permitted to conduct any regulated activities” and “must not dispose of any assets or funds.” The regulator indicated that the choice was taken “in order to further protect customer money”.
“There are ongoing events in Germany concerning companies closely linked to Wirecard. Wirecard’s parent company, Wirecard AG based in Germany is currently the subject of law enforcement interest and insolvency proceedings,” stated the FCA.
Cryptocurrency card operators Crypto.com and Tenx informed prospects that their funds have been secure. Kris Marszalek, chief govt officer of Crypto.com, acknowledged that the FCA had “effectively shut down Wirecard UK” and that European card customers will not be capable to use their playing cards.
“Our EU/UK cards will stop working today. All customers will receive 100% credit back to their crypto wallets within 48 hours,” Marszalek stated.
“Separately, we’re working on transferring the card program to a new provider, so that we can resume the issuing of cards in the UK and Europe and allow existing and new customers to benefit from our card program again,” he added.
Tenx tweeted that ” [we] wish to clarify that each one of our buyer’s crypto and fiat balances are maintained by Tenx and never Wirecard…this subject has no affect on our operation.”
Wirecard Card Options stated on its web site that it “has temporarily suspended its electronic money issuing, card issuing and acquiring a business with immediate effect and until further notice.”
The corporate added that it’s working to have the license restored by the FCA. Wirecard AG has confronted a tumultuous week because it reported lacking $2 billion from its accounts on June 18 and later admitting the cash didn’t exist in any respect.
Now, the German funds processor has filed for insolvency within the face of money owed totaling almost $four billion. Its long-time CEO Markus Braun stop on June 19 earlier than he was arrested solely three days in a while allegations of manipulating monetary information. He’s out on $5.6 million bail.
Shares of Wirecard have since been suspended from the Frankfurt Stock Alternate after shedding greater than 90% in a matter of days.
What do you consider the affect of Wirecard’s collapse on the issuance of crypto debit playing cards?
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