Since yesterday, the company Wirecard is in bankruptcy because of a hole of almost 2 billion euros in its finances. Being the issuer of several debit cards linked to cryptocurrencies, one could fear the consequences of this bankruptcy. Unfortunately, Crypto.com has to pause its offer of crypto cards in Europe.
Safe funds, but interruption of the debit card offer
In an announcement published this Friday, June 26, the company Crypto.com explains that it is forced to ” cease all activity ” on their debit card service . This concerns the United Kingdom and the rest of Europe.
This decision follows an unfavorable opinion against Wirecard UK from the FCA, the Financial Conduct Authority in UK.
Consequently, users of Crypto.com Visa MCO cards will no longer be able to reload their cards or make any transactions. And this, starting today.
Of course, the funds on the cards remain secure and will be reimbursed in return on the users ‘ wallets. As Kris Marszalek, CEO of Crypto.com, explains on his Twitter account:
“Our EU/UK cards will stop working today. All customers will receive 100% credit back to their crypto wallets within 48 hours.”
This morning, the FCA effectively shut down Wirecard UK, the issuer of our cards in Europe.
Our EU/UK cards will stop working today. All customers will receive 100% credit back to their crypto wallets within 48 hours.
We’re moving the card program to a new vendor. https://t.co/jEdxMuwipq
— Kris | Crypto.com (@Kris_HK) June 26, 2020
At the same time, the Crypto.com teams are already working on the transfer of their card issuance offer. The company is actively seeking a new supplier to replace Wirecard.
We will obviously keep you informed of all developments on this subject. Crypto.com may however not be the only company in the cryptosphere to have to suspend its debit card offer… TenX, Wirex and CryptoPay were also Wirecard customers.