Wirecard digital currency services back online

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U.K.’s Financial Conduct Authority (FCA) announced that Wirecard UK can resume its operational activities in the country.

In a statement, the FCA said: “The firm [Wirecard] was able to meet certain conditions required to lift the restrictions we imposed on it. We are now in a position to allow Wirecard to resume operational activity. This means customers will now, or very shortly, be able to use their cards as usual.”

As a result, individuals who live in the EU and U.K. and use Crypto.com, TenX, or Cryptopay’s digital currency debit cards—which are issued by Wirecard Card Solutions—can use their digital currency debit cards at retailers once again.

The Wirecard scandal

The FCA initially ordered Wirecard to cease all of its regulated activities in the U.K to protect UK and EU citizens against any fallout from its accounting scandal.

The accounting scandal began last June 18, when Wirecard’s auditor Ernst and Young issued a statement saying that there was a $2.1 billion discrepancy between the amount of wealth that Wirecard had on hand and the amount of wealth they reported on their consolidated balance sheet.

Shortly afterward, Wirecard CEO Markus Braun resigned from the company and was taken into custody. Following the arrest of the former CEO, Wirecard filed for insolvency, and after that, the FCA issued a statement to protect others from any impact that the Wirecard scandal may have eventually had on others.

Wirecard’s digital currency clients

Cypto.com, Tenx, and CryptoPay all use Wirecard Card Solutions (WCS) as the card issuer and service provider for their digital currency debit cards. When the FCA ordered Wirecard to halt its services in the EU/UK, digital currency debit card owners living in these regions could no longer use their cards to make purchases. Crypto.com even credited all of their digital currency debit card users’ accounts in an equivalent amount of fiat upon the FCA’s announcement.

However, since the FCA made its latest update, each digital currency debit card provider issued a statement saying their debit cards were back online and could be used to make purchases once again.

The TenX Visa Card and related services have now been re-enabled! We will continue to closely monitor the developing situation and keep you updated, thank you for your support. pic.twitter.com/6JLAbZydGQ

— TenX (@tenxwallet) June 30, 2020

https://t.co/c3J5tRUwlA cards are back on track!
As of today, @wirecard resumed its operations in the UK, meaning that our clients can resume enjoying our https://t.co/c3J5tRUwlA prepaid cards. pic.twitter.com/Tu27vFTQMY

— Cryptopay (@cryptopay) June 30, 2020

Update: All Europe/UK cards have been reactivated.

The FCA lifted the ban on Wirecard UK at 00:01 UTC on 30 Jun.

Kindly note that card balances were refunded to users’ crypto wallets last week, please top up your card before using it. pic.twitter.com/wE3BaVSCq0

— Crypto.com (@cryptocom) June 30, 2020