U.K. Financial Regulator Suspends Wirecard from Conducting A...
Cryptocurrency, News

U.K. Financial Regulator Suspends Wirecard from Conducting Any Regulated Activities in the Country

U.K.’s Financial Conduct Authority (FCA) has suspended Wirecard Card Solutions (WCS), a subsidiary of Wirecard which issues Visa crypto debit cards. According to a June 26 announcement, the U.K financial regulator has imposed a number of requirements on Wirecard’s authorisation. 

The FCA said Wirecard is no longer permitted to conduct any regulated activities or dispose of any assets or funds. The company is also required to set out a statement on its website and communicate to customers that it is no longer permitted to conduct any regulated activities. 

The FCA noted in the announcement that there are ongoing events in Germany concerning companies closely linked to Wirecard. The regulator added that Wirecard’s parent company, Wirecard AG which is based in Germany is currently the subject of law enforcement interest and insolvency proceedings. However, the regulator said Wirecard AG is not under its supervision. 

According to the FCA, its primary objective is to protect the interests and funds of customers who use Wirecard. The regulator said it made this move following last week’s news of €1.9 billion missing from the accounts of Wirecard. The company’s UK branch has therefore been restricted not to pay out or reduce any money it holds for its customers except on their instructions. 

The regulator added that it has been working closely with Wirecard UK and other authorities over the past few days to take action that protects consumers. It said the additional measures taken on June 26 require the company to cease all regulated activities in order to further protect customers’ funds. With these new measures, customers’ money cannot be accessed and they should contact their card provider directly for further information. 

WCS issues Visa crypto debit cards for crypto companies such as Crypto.com, Cryptopay and TenX. Commenting on the issue, Crypto.com CEO Kris Marszalek said the company’s EU/UK cards will stop working due to the WCS shut down by FCA. However, all customers will receive 100% credit back to their crypto wallets within 48 hours. Marszalek added that the company will be moving its card program to a new vendor.        

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Born, raised and schooled in Sweden with a degree in law, Glenn is a long time crypto enthusiast. He quickly acknowledged the potential of the blockchain technology, and the benefits of decentralization. Glenn believes in a future where blockchain technology and decentralization will govern and enable people to have a transparent security and financial system.