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FCA suspends Wirecard’s subsidiary, Crypto.com searches new vendor

  • UK’s Financial Conduct Authority (FCA) has suspended the UK subsidiary of the company Wirecard due to an investigation in Germany.
  • The subsidiary Wirecard Card Solutions (WCS) issued VISA cards for companies such as TenX, Cryptopay and Crypto.com.  

The German company Wirecard’s plot has taken a new turn. The UK’s Financial Conduct Authority (FCA) has decided to effectively suspend Wirecard’s UK subsidiary, Wirecard Card Solutions Limited (WCS). The announcement was made on Friday 26th June, the FCA imposed 3 sanctions on the subsidiary: not to dispose of any assets or funds, not to carry out any regulated activity and to communicate this to its clients.

Wirecard Card Solutions (WCS) was based in the North of England, Newcastle. The company issued VISA cards for users of Crypto.com, TenX and Cryptopay. The FCA added the following about the suspension of WCS:

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. Wirecard AG is not supervised by the FCA.

The FCA also states in its press release that it has made this decision to protect the monetary interests of consumers who used the services of the company. In addition, the regulator claims to be working closely with Wirecard UK and local authorities to take action to protect consumers. The FCA’s measures have blocked access to the funds managed by the company, but the regulator recommends that any customer contact them for further information.

Crypto.com CEO Kris Marszalek and his company have responded quickly to the FCA’s decision. Via his Twitter account, Marszalek said the following:

This morning, the FCA effectively shut down Wirecard UK, the issuer of our cards in Europe. Our EU/UK cards will stop working today. All customers will receive 100% credit back to their crypto wallets within 48 hours. We’re moving the card program to a new vendor.

Marszalek added that he hopes to see the platform cards in operation soon. According to Crypto.com’s CEO, his company’s priority was to return customers’ funds within 48 hours, and in a subsequent update, Marszalek said this goal was met. Now the platform will concentrate its efforts on the process of moving its card program to a new provider.

TenX also issued a statement to its customers regretting the closure of its card program. The platform was severely affected by the events at Wirecard, but assured that its clients’ funds remain safe and can be used through the TenX wallet. The platform is working to replace the affected services. In contrast, WCS’ partner company, Cryptopay, has not issued a statement.

Alternative solutions for Wirecard

For European users of crypto debit cards, Bitwala may currently prove to be a viable alternative. Berlin-based Bitwala is the first company in the world to offer the first account that combines a traditional bank account with a Bitcoin and Ethereum wallet and trading service. All on one platform.

With the Mastercard card issued by the German bank solarisBank and the “non-custodial” wallet, Bitwala could be a good alternative for affected customers. Bitwala currently has a welcome bonus of 35 euros if you click on this link*.

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Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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