Cryptopay claims that the issue mainly impacts EU card holders, while customers in the United Kingdom may also face some issues.
The debit card provider for the European Union segment of a custodial digital asset brokerage platform Cryptopay has recently lost its Electronic Money Institution (EMI) license.
In a customer email sent on June 22nd, the company advised its EU cardholders to promptly spend or transfer their card holdings. This could be accomplished by buying crypto with the card, withdrawing cash at an ATM, transferring the balance to another card, or simply spending the money in a store.
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However, in a separate announcement, the company reassured that any funds in the app's accounts are unaffected and remain secure.
Cryptopay's EU customers had previously been serviced by a licensed Lithuanian EMI, UAB PayrNet, for their debit card needs.
It is worth noting that the revocation of PayrNet's license by Lithuania's central bank may lead to user funds being temporarily frozen on their cards. However, the company clarified that the disruption would only affect funds moved to a user's debit card.
The situation, as mentioned in the email communication, "does not influence <user> Cryptopay account, which shall continue business as usual."
Assurances were also provided that should a customer's card become inoperable, users could retrieve the card's funds directly from UAB PayrNet. Cryptopay pledged to assist in coordinating this procedure if it becomes necessary.
Cryptopay representative emphasized that the issue would primarily impact users in the EU. Customers in the United Kingdom might experience a temporary disruption due to the company switching off card services to maintain operational stability. However, services should resume within a few days in the United Kingdom.
Cryptopay's Head of Support, Konstantin Gorin, drew from the company's history of navigating banking system crises to express confidence in handling the current challenge:
This October it’s ten years on the market for us, we’ve seen worse. We’ve already been through similar situations in the past (back in 2018 when MasterCard and VISA pulled a plug on almost every existing crypto card program and back in 2020 when the Wirecard scandal hit the market), we're confident that we’ll overcome this and keep on.
Despite the recent setback with its EU debit card provider, Cryptopay maintains that client funds are safe and operations will continue as usual, reflecting the company's resilience and commitment to its customers.
In other payment-related news, the crypto payment pioneer Wyre revealed plans to cease operations after a ten-year run, claiming that it is the only way to "protect the best interest of our key stakeholders and customers."
