EU debit card provider Cryptopay has lost its Electronic Money Institution (EMI) license, according to a June 22 email sent to its customers. The company recommends that EU cardholders spend or transfer money immediately from their cards. Cryptopay told Cointelegraph that the funds held in the app’s accounts are safe.
Cryptopay was using UAB PayrNet, an EMI authorized in Lithuania, to provide debit card services to its customers in the European Union. But the PayrNet license was Cancellation – annulment by the Central Bank of Lithuania, which leads to the risk of users’ funds becoming temporarily stuck to their cards.
An email stated that only funds transferred to the user’s debit card would be affected. Other than that, “This issue does not in any way affect your Cryptopay account which will continue to operate as normal.”
For funds that have already been transferred to a card, Cryptopay recommends spending it or transferring it away “as soon as possible.” This can be done by using the card to buy cryptocurrency, withdraw it as cash from an ATM, transfer it to a different card, or simply spend the money in store.
Cryptopay has also made it clear that even if a customer’s card stops working, the user can still refund the card money directly from UAB PayrNet. Cryptopay has offered to help coordinate this process should it become necessary.
Related: Binance Pay sees growing interest in Africa, Eurasia and Eastern Europe
In an email conversation with Cointelegraph, a Cryptopay representative explained that the issue primarily affects users in the European Union. However, UK users may be temporarily affected as the company has “discontinued card services in order to maintain operational stability”. These services must be restarted within “two days” in the UK.
Cryptopay Head of Support Konstantin Gorin stated that the company has dealt with crises from the banking system in the past, and he believes the company is ready to tackle this current challenge:
“Last October we had a decade in the market for us, we’ve seen worse. We’ve actually been through similar situations in the past (in 2018 when MasterCard and VISA pulled the plug on almost every crypto card program out there and back in 2020 when the Wirecard scandal hit the market), we’re confident we’ll get through this and keep going.
Gorin also claimed that the team is already working on a new discount program, saying, “First order of business to make sure our impacted customers are taken care of, then – we’re already working on a new card program solution for them and for us.”
Debit card issuer Wirecard went bankrupt in June 2020. In that time, it has become one of the most used debit card providers for crypto companies, including Cryptopay. Cryptopay later relaunched its platform with a different provider.
Despite the ongoing problems in the crypto debit card industry, there are also signs that debit card companies are becoming more crypto-friendly. In March, Mastercard announced that it would integrate stablecoins into its payment network within the Asia Pacific region, allowing them to be accepted in the region wherever Mastercard is located.