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Crypto Card Users’ Funds Suspended By UK Financial Conduct Authority

The license of Wirecard Card Solutions (WCS) was suspended on Friday by the UK Financial Conduct Authority (FCA). It might result in users of cards such as Crypto.com’s Mco visa debit card and Ten X’s visa debit card being barred from accessing their funds for the time being.

Following the suspension, the FCA notified that  Wirecard Card Solutions “is no longer permitted to conduct any regulated activities” and “must not dispose of any assets or funds.” The decision was taken to protect the 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,” said the FCA.

Crypto.com and Tenx have notified their customers that their funds were safe. The chief executive of Crypto.com Kris Marszalek said that the FCA had effectively shut down Wirecard UK and that European card users will no longer be able to 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.

” [we] would like to make clear that all of our customer’s crypto and fiat balances are maintained by Tenx and not Wirecard…this issue has no impact on our operation,”  Tenx tweeted

Meanwhile, wirecard Card Solutions on their website said it “has temporarily suspended its electronic money issuing, card issuing and acquiring a business with immediate effect and until further notice.”

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.