Cryptopay is a firm operating out of the EU that has recently lost its practice license. The firm was operating as EMI or electronic money institution. However, the Bank of Lithuania has recently revoked its EMI license for the app that was using UAB PayrNet. It is a debit card services provider that is currently facing issues from the regulators.
The firm was notified by the banking authorities on June 22nd about the revocation of its EMI license via email. With this notification, Cryptopay was directed to halt all transactions processed through its card with immediate effect.
Meanwhile, the execs at Cryptopay have assured the stakeholders that the funds of the consumers are safe. Cryptopay has been working with UAB PayrNet for offering debit card services for consumers based in Lithuania.
However, the Central Banking enterprise has decided to revoke its license on account of legal violations. The Central bank has maintained that the consumers who wish to apply to recovery of their stuck fund may contact UAB Payrnet directly.
On the other hand, Cryptopay has advised consumers to move their funds that are already sent to the debit card by purchasing cryptocurrencies or withdrawing them as cash from ATMs.
Cryptopay Temporarily Halts Its Services
The officials at Cryptopay have maintained that the consumers in EU may have to wait for a longer while to use their card services again. However, UK clients who are debit cardholders will be able to resume their services as normal after a temporary halt.
Konstantin Gorin is the head of support at Cryptopay who recently claimed that the company has experienced dealing with the banking crisis in the past as well.
He further maintained that the company will complete a decade of operations in October of the current year. He also claimed that the company has faced similar challenges in the past. He was referring to the 2018 event when both Mastercard and VISA revoked their service contract with crypto card payment companies.
At the same time, in 2020 a crypto card payments company named Wirecard went out of commission when it lost banking support. He also informed the media that the company is already working on a new debit card deal and the priority of the firm is to make sure that all its consumers are secured.
Wirecard became one of the top dogs in 2020 that were offering card payment services to various cryptocurrency enterprises. However, the firm came to a sudden halt on account of the discovery of missing $3.2 million from its reserves.
The founding CEO and other top executives of the firm resigned with law enforcement agencies making arrests. At the time of its peak, Wirecard was offering card payment services to big names like Crypto.com, wirex, Tenx, and Cryptopay among others.
However, the firm eventually filed for insolvency maintaining that it was unable to keep up with its debt obligations. Two years later, the crypto debit card industry has started to gain momentum once again. This year in March, Mastercard announced that it was working on offering stablecoin card payments for consumers hailing from the APAC region.
It means that holders of the card will be able to conduct international transactions using their stablecoin reserves anywhere in the world where the merchants are accepting the stablecoin payments.