The UK Financial Conduct Authority ( FCA) banned on Friday the license of Wirecard Card Solutions (WCS), a troubled Wirecard AG unit authorized to issue Visa cryptocurrency debit cards.
This indicates that certain cardholders, such as Crypto.com's Mco Visa Debit Card and Tenx's Visa Debit Card, will not be able to access their funds for a while. All crypto-enabled cards are provided by the Newcastle WCS.
FCA claimed that Wirecard Card Solutions "is no longer allowed to perform any controlled operations" and "must not dispose of any properties or funds." The regulator suggested that the action was made "to help safeguard consumer capital."
"There are continuing events in Germany concerning firms that are closely linked to Wirecard. Wirecard's holding firm, Wirecard AG, headquartered in Germany, is currently the focus of law enforcement and insolvency proceedings, "said FCA.
Cryptocurrency card operators Crypto.com and Tenx assured customers that their money was free. Kris Marszalek, Chief Executive Officer of Crypto.com, claimed that the FCA had "effectively shut down Wirecard UK" and that European cardholders would no longer be allowed to use their cards.
"Now, our EU / UK cards should stop running. Within 48 hours, all customers would earn 100% credit back to their crypto wallets, "Marszalek added.
Source: Bitcoin.com
