Wirecard crypto card users’ funds locked. On Friday, the UK Financial Conduct Authority (FCA) suspended the license of the troubled Wirecard AG unit Wirecard Solutions (WCS), which is responsible for issuing Visa cryptocurrency debit cards.
As such, users of Crypto.com’s Mco visa debit card and Tenx’s visa debit card may not be able to access their funds for a time. Both the crypto-enabled cards are issued by the Newcastle-based WCS.
FCA said Wirecard Card Solutions “is no longer permitted to conduct any regulated activities” and “must not dispose of any assets or funds.” The regulator indicated that the decision 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,” added the FCA.
Kris Marszalek, Crypto.com’s chief executive, said the FCA had “effectively shut down Wirecard UK” and European card users could no longer use their cards.
“Our EU/UK cards will stop working today. All customers will receive 100% credit back to their crypto wallets within 48 hours,” Marszalek said.
“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.