UK FCA suspends Wirecard card license
The Financial Conduct Authority (FCA) of the United Kingdom has suspended the license of the Wirecard subsidiary, Wirecard Card Solutions (WCS), which issues Visa cryptocurrency debit cards for Crypto.com and TenX.
According to a publication From FCA on Friday June 26, the regulator has imposed several requirements on WCS. Under these requirements, WCS is no longer allowed to carry out regulated activities and cannot have any assets or funds.
The real problem lies with Wirecard AG, the parent company of Germany-based Wirecard Card Solutions (WCS), which is currently «Object of interest of the law and insolvency proceedings»said the regulator.
According to some sources, on Thursday June 25, Wirecard AG filed for insolvency in the Munich court citing his "Imminent insolvency and over-indebtedness". The problem started when he was unable to account for $ 2.1 billion recorded on his balance sheet during the audit conducted by Ernst and Young (EY).
On June 19, Wirecard CEO Markus Braun resigned as the company said there might not be 2.1 billion of his account, and perhaps some employees had inflated the revenue in an attempt to trick auditors.
According to recent reports, Wirecard collapsed with a debt of $ 3.7 billion, as Ernst and Young refused to sign their payment records as of 2019. With this collapse, their UK-based subsidiary, Wirecard Card Solutions was also ordered to suspend its operation, leaving many UK / Europe-based holders of its associated crypto card in black and white.
Yesterday, Crypto.com issued a statement which said that customer funds on Visa MCO cards were safe and that his team was working on credit processing for crypto wallets equivalent to the fiduciary balances on the cards. According to upgrade Recent from Crypto.com, all credits have been successfully processed in cardholders' crypto wallets.
"Separately, we are working to transfer the card program to a new provider, so that we can resume issuing cards in the UK and Europe and allow new and existing customers to benefit from our card program again."
TenX, on the matter, stated:
“Rest assured that all customer funds are safe and accessible as TenX Wallet is not affected. You can continue to store, send and receive cryptocurrencies at any time without interruption. The security of your funds is our top priority. "
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