European Crypto Cards Reactivate as FCA Allows Wirecard to Resume Operation

Published at: June 30, 2020

Wirecard-issued crypto debit cards from companies like Crypto.com and TenX have been reactivated following permission from the United Kingdom’s Financial Conduct Authority, or FCA.

On 29 June, the U.K. watchdog allowed Wirecard Card Solutions, a Newcastle-based subsidiary of troubled German company Wirecard AG, to resume regulated activity. The FCA suspended Wirecard Card Solutions’ license on June 26, soon after news about Wirecard AG misrepresenting over $2 billion in cash reserves surfaced.

The respective restrictions were lifted at 00:01 GMT on June 30, 2020, meaning that all crypto debit cards issued by Wirecard have now been re-enabled. The regulator stressed that there are still “requirements imposed on Wirecard’s authorisation."

The news has since been confirmed by Crypto.com and TenX, who announced that their crypto debit cards are now usable again.

Wirecard is in big trouble

The scandal started on June 18, when auditors from Big Four accounting company EY could not confirm the existence of $2.1 billion in cash. As previously reported by the Financial Times, Wirecard staff in Dubai and Dublin had allegedly misled EY for nearly 10 years by conspiring “to fraudulently inflate sales and profits at Wirecard subsidiaries." 

On June 25, the troubled company filed to open insolvency proceedings, which could be seen as a first step to bankruptcy. Shareholders in Wirecard have already filed legal proceedings against EY for its alleged negligence in auditing the firm. 

Markus Braun, the former CEO of Wirecard, was arrested by police in Munich after being charged with misrepresenting the company’s balances.

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