The UK Financial Conduct Authority (FCA) has allowed Wirecard UK to resume payment services. Consequently, the companies handling cryptocurrency debit cards resumed their issuance.
Wirecard UK Resumes Regulated Activity
Following the missing $2.1 billion of company funds and Wirecard filing for insolvency, the UK FCA, which authorizes and supervises its subsidiary Wirecard Card Solutions, suspended all regulated activities last week.
UK’s watchdog argued that the primary objective of these requirements was to protect all customers’ electronic funds. However, it also “had the effect of preventing consumers from withdrawing and making payments with those funds.”
On Monday, the regulator published an update on the situation that reads, “the FCE provided written consent to allow Wirecard to resume issuing e-money and providing payment services.” All previously instituted restrictions were lifted at 00.01 on June 30th.
Although Wirecard can now operate again with FCA’s permission, there are still a few requirements in place still imposed on its authorization. They include “restrictions over where it can hold customer monies and restrictions over its ability to transfer its own assets.” The regulator will continue examining any potential concerns by working with the firm to address them as well.
Crypto Debit Cards Rejoice
Wirecard’s subsidiary Wirecard Card Solutions issues two of the most widely used cryptocurrency debit cards. Namely, TenX’s Visa Debit Card and Crypto.com’s MCO Visa Card. While TenX initially said that the suspension had “no impact on our operation,” the company later noted that their program “was disrupted.”
Crypto.com had to stop all activity on their card programs in Europe and the UK. Both firms now responded following the lift of the restrictions:
“We are glad to update you that the TenX Visa Card has now been re-enabled, along with the Buy Bitcoin via debit-credit card feature in the TenX app. You may resume using these services as per usual, with no further action needed on your part.” – TenX tweeted.
Crypto.com’s message was somewhat similar, informing all of its customers in Europe and the UK that the MCO Visa Cards services are now fully operational. However, as the company refunded the card balances to users’ cryptocurrency wallets, they have to top them up before using them.