FCA allows Wirecard UK to resume operations, including reactivation of cryptocurrency cards
Wirecard Solutions UK returns to business according to a statement issued by the UK financial regulator, the Financial Conduct Authority (FCA) on Monday.
This happens after a three-day business suspension that caused multiple Wirecard-issued Visa cards, such as Crypto.com, TenX and Cryptopay, among others, they will be inactive during the weekend and Monday.
However, according to the FCA, the regulator worked closely with the company to ensure the resumption of services as soon as possible.
“We have been working closely with Wirecard UK and other authorities for the past few days to ensure that the company could meet certain conditions required to lift the restrictions we imposed on it. We are now in a position to allow Wirecard to resume operational activity. ”, the statement read.
Since then, Wirecard Solutions has resumed services as of 00:01 GMT on June 30, 2020. This means that any card service company that has been affected by the suspension can also resume services.
According to the statements of Crypto.com and TenXIt appears that the two cryptocurrency companies are again endorsing card services. This is in line with the statement given by FCA stating that the card services provided by WCS were expected to return as soon as possible. "This means that customers will now, or very soon, be able to use their cards as usual."
"If any customer still experiences difficulties using their cards, they should contact their card provider directly and do so using the contact details on their website", adds the FCA in its statement.
The FCA suspended Wirecard's operations on Friday June 26 following a June 18 disclosure that the chief executive of WCS Wirecard AG's parent company had misled auditors for nearly 10 years by inflating sales and earnings figures for its subsidiaries. This led to the discovery of a $ 2.1 billion cash deficit on the company's balance sheet uncovered by accounting firm Ernst and Young.
Wirecard AG filed for bankruptcy on June 25 following the disclosure of this scandal that precipitated the FCA's suspension of services from the Wirecard AG Wirecard UK subsidiary the next day.
Despite the resumption of services, Wirecard UK is still under FCA restrictions to ensure that clients' funds are protected.
"We continue to work with the company and are closely monitoring it to ensure that it meets the conditions we have imposed and continues to protect consumers' money", indicates the FCA.
Some of the restrictions that are still in place include the inability to transfer company funds and restrictions on where customer funds can be stored.