Wirecard: Crypto Card Users’ Funds Locked as UK Regulator Suspends Subsidiary

UK Financial Conduct Authority (FCA) on Friday suspended the license of Wirecard Card Solutions (WCS), a unit of troubled Wirecard AG, which is accountable for issuing Visa cryptocurrency debit playing cards.

It means some customers of playing cards such as Crypto.com’s Mco visa debit card and Tenx’s visa debit card might not have the ability to entry their funds for a time. Both the crypto-enabled playing cards are issued by the Newcastle-based WCS.

FCA mentioned 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 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,” mentioned the FCA.

Cryptocurrency card operators Crypto.com and Tenx advised clients that their funds have been protected. Kris Marszalek, chief government officer of Crypto.com, acknowledged that the FCA had “effectively shut down Wirecard UK” and that European card customers will not have the ability 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 mentioned.

“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 every one of our buyer’s crypto and fiat balances are maintained by Tenx and never Wirecard…this situation has no affect on our operation.”

Wirecard Card Solutions mentioned 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 firm 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 money 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.

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