web analytics

Bitcoin Debit Card providers have Suspended the Services under Orders of Visa

Bitcoin Debit Card providers have Suspended the Services under Orders of Visa

Several pre-paid crypto debit card providers have suspended the Bitcoin service and the companies affected include Bitwala, Cryptopay, Wirex, and TenX.

These services allow individuals to spend cryptocurrencies — predominantly Bitcoin — in traditional brick-and-mortar establishments through a debit card issued by one of the major providers, Visa and MasterCard.

Speaking to their customers on Twitter, the affected companies have said the move is the result of actions from their card issuer, who was acting on behalf of Visa Europe. A tweet from Singapore-based TenX itentifies their card issuer as the Gibraltar-based WaveCrest. It’s not clear if WaveCrest was the provider for all the aforementioned companies.

Users of other bitcoin debit card services have reported receiving emails from WaveCrest informing them that they had to close all WaveCrest debit cards with immediate effect. The email says:
“We, WaveCrest, are the issuer of your Visa Prepaid card, which you have enrolled for through one of our program partners. Visa have today instructed us that we must close all WaveCrest issued Visa Prepaid Cards with immediate effect.”

The email goes on to say that the WaveCrest-issued card will no longer function, although the users’ funds remain safe with the digital wallet provider. A statement from Visa Europe obtained by The Daily Beast reporter Joseph Cox said the action was taken due to WaveCrest’s “non-compliance” with VISA’s membership regulations.

This move has upended a thriving industry, with several major players. It has also had dire consequences for users, many of whom rely on these services for their day-to-day spending. Some users on Twitter are reportedly stranded abroad without funds.

An update from Visa Europe :
We can confirm that WaveCrest’s Visa membership is being terminated due to continued non-compliance with our operating rules. All of WaveCrest’s Visa card programmes will be closed as a result. Visa has other approved card programmes that use fiat funds converted from cryptocurrency in a number of jurisdictions. The termination of WaveCrest’s Visa membership does not affect these other products.

Visa is committed to the security of its ecosystem and compliance with Visa’s operating rules is critical for ensuring the safety and integrity of the Visa payment system. Our issuers’ card programmes must comply with our membership regulations, as well as all applicable laws.

In its statement, Visa makes clear that this isn’t a crackdown on cryptocurrencies, but rather action against one company that broke its rules. We asked about the circumstances that caused Visa to take action against WaveCrest. If they elaborate further, we’ll let you know.

An update from Bitwala representative :
The change came very suddenly which gave us no time to properly notify our customers. Right now assuring them is our first priority. The decision also symbolises that Visa, and by other traditional finance corporations, is not willing to service the growing crypto economy. This in turn motivates us to proceed further with our vision of building a crypto first bank which provides a bitcoin debit card with uninterrupted service.

Credits: https://thenextweb.com/hardfork/2018/01/05/spending-bitcoin-with-a-debit-card-just-got-a-lot-harder/

Summary
Bitcoin Debit Card providers have Suspended the Services under Orders of Visa
Article Name
Bitcoin Debit Card providers have Suspended the Services under Orders of Visa
Description
Several pre-paid crypto debit card providers have suspended the Bitcoin service and the companies affected include Bitwala, Cryptopay, Wirex, and TenX.
Author
Publisher Name
Softcare CS
Publisher Logo
blank
SNR

Linux & Windows Geek, Blogger & System Administrator

Leave your message

Scroll Up