The Visa corporation has suspended membership for company that powers many crypto-backed Visa cards, leaving customers stranded.
A great many of Visa’s cryptocurrency debit cards have ceased working today as the company ended its relationship with a debit card provider called WaveCrest. Affected cards are those issued by WaveCrest, including products from CryptoPay, Bitwala, TenX, Wirex and others.
The move, which first appeared to be cryptocurrency related, is in fact simply a crackdown against the WaveCrest company, who has apparently violated Visa’s policies. A Visa representative has told TNW:
“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.”
The news first broke via Twitter, with a number of companies linked to WaveCrest making public apologies.
— Bitwala (@bitwala) January 5, 2018
Unfortunately, our card issuer instructed us to cease all Cryptopay prepaid cards starting January 5th, 2018. All funds stored on cards are safe and will be returned to your Cryptopay accounts ASAP. Sorry for all the inconvenience caused, we’re working on the solution!
— Cryptopay (@cryptopay) January 5, 2018
The general increase in attention from regulators has led to growing fear over a cryptocurrency crackdown. However, the current problem is specifically related to issues with WaveCrest. Other companies and card issues have been unaffected.
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Author: Jon Buck