Cryptopay, a European Union (EU) debit card provider for cryptocurrencies, has lost its Electronic Money Institution (EMI) license. In an email sent to its customers on June 22, the company advised EU cardholders to spend or transfer their funds immediately. However, Cryptopay assured customers that funds held in the app’s accounts are secure.
The EMI license was revoked from UAB PayrNet, a licensed EMI in Lithuania that Cryptopay had been using to provide debit card services to its EU customers. The revocation of the license by Lithuania’s central bank raises concerns that users’ funds may become temporarily stuck on their cards.
According to the email sent by Cryptopay, only funds transferred to a user’s debit card would be affected. The issue would not impact users’ Cryptopay accounts, which would continue to operate as usual. However, for funds that have already been transferred to a card, Cryptopay recommends that they be spent or transferred away as soon as possible. Users can accomplish this by purchasing cryptocurrencies using the card, withdrawing cash from an ATM, transferring funds to a different card, or making purchases at stores.
Cryptopay also assured customers that even if their cards stop working, they can still recover the funds directly from UAB PayrNet. The company offered to assist customers in coordinating this process if necessary.
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While the problem primarily affects users in the EU, users in the United Kingdom may also experience temporary disruptions as Cryptopay has temporarily discontinued card services to maintain operational stability. However, the company expects these services to be restored within a couple of days.
Konstantin Gorin, Cryptopay’s head of support, expressed confidence in the company’s ability to overcome this challenge. He stated that Cryptopay has dealt with similar situations in the past, including when major payment providers like MasterCard and Visa withdrew support for crypto card programs. Gorin also revealed that the company is already working on a new debit card program to address the current situation.
It is worth noting that Wirecard, a previous debit card issuer used by Cryptopay and other crypto companies, filed for insolvency in June 2020. Despite the challenges faced by the crypto debit card industry, there are positive developments. In March, Mastercard announced its intention to integrate stablecoins into its payment network in the Asia-Pacific region, opening up opportunities for their acceptance in locations where Mastercard operates.
In conclusion, Cryptopay, an EU debit card provider for cryptocurrencies, has lost its EMI license due to the revocation of the license from its partner, UAB PayrNet. This development poses a risk of users’ funds becoming temporarily stuck on their cards. Cryptopay advises EU cardholders to spend or transfer their funds immediately. However, the company assures customers that funds held in their app’s accounts are safe. Cryptopay is also working on a new debit card program to address the situation and is confident in its ability to overcome this challenge.
