Wirecard Saga: Crypto.com Halts MCO Visa Card Program in Europe

Following the suspension of all activities of Crypto.com MCO card issuer, Wirecard Card Solutions, by the Financial Conduct Authority (FCA), Crypto.com has announced that all activities for its MCO card programs in Europe would stop operations for now. 

Announcing the development in a blog post today, the firm stated that customers within the region would not be able to top up their cards or make any other transaction using MCO cards throughout today until it proffers a solution. 

The leading payments and cryptocurrency platform noted that customers’ funds are safe while adding that all fiat balances held on the cards will be converted to its cryptocurrency equivalent and credited to customers’ crypto wallets in the next 48 hours.

As reported on Coinfomania, Crypto.com MCO Visa card was issued by Wirecard Card Solutions Ltd (“WDCS”) following a license obtained from Visa.

Crypto.com noted that it is working on getting a new card issuer in the region so that normal operations for its card program in Europe can commence. 

Wirecard’s saga  

According to reports yesterday, German payment firm, Wirecard Solutions LTD (“WDCS”) said it would file for insolvency with a district court in Munich. This came after the firm revealed last Thursday that more than €1.9 billion ($2.1 billion) had gone missing from its balance sheet. 

Subsequent investigations earlier this week suggested that the money never existed, due to strong indications that Wirecard’s employees were inflating its revenue. 

The firm tried to reconcile its account discrepancies by attempting to reach a deal with creditors on a financing lifeline, but its efforts could not salvage the situation, which forced the FCA to weigh in on the issue.

The implication of the FCA ordering Wirecard to stop operation would see all cards issued by the payment provider, including cards belonging to Crypto.com users.

See Also: BitMEX Not Authorized To Offer Financial Services In The UK, FCA Says