Crypto.com had to suspend the operation of its VISA card due to the problems related to Wirecard.
It all originated from the bankruptcy of the German financial technology company Wirecard.
Following the bankruptcy that occurred in the past few days, the UK Financial Conduct Authority (FCA) had to revoke the authorization to operate from Wirecard Card Solutions Limited, a Wirecard subsidiary regulated by the same FCA that issues VISA cards for Crypto.com.
The FCA has stipulated that Wirecard Card Solutions can no longer hold assets or funds, cannot participate in any regulated activity, and must make a statement on its website to its customers that it can no longer participate in regulated activities.
The parent company Wirecard AG is based in Germany and is not under the control of the FCA, but its subsidiary Wirecard Card Solutions has offices in Newcastle and operates in the United Kingdom.
Crypto.com, after listening to the news, posted a post on its official blog noting the FCA's decision, revealing that it has received an explicit request to cease all activity on its cards in the UK and Europe. .
"Our customers in those two regions will not be able to reload their cards or transact later today."
However, they do ensure that clients' funds are safe, and the team is working on calculating the fiat currency balances they have on their cards. This process must be completed within 48 hours.
At the same time, they are also looking for a new provider to transfer the company's entire card program to, as at this point Wirecard Card Solutions may never reopen.
Crypto.com CEO, Kris Marszalek, has stated that all customers holding the cards will be reimbursed, with the cryptocurrencies credited to their wallets equal to the balances of the fiat currencies on the cards.
For now, the price of the Crypto.com CRO token does not appear to have been affected by this issue as its current price is in line with yesterday's price.
It should be noted that from the minimums reached at the end of 2019, CRO price has almost quadrupled during the first six months of 2020, so you might be ready to roll back significantly. Markets seem to be doubting that the Wirecard issue could also affect Crypto.com.