FCA Allows Resumption of Wirecard UK Operations Including Reactivation of Crypto Cards

FCA Allows Resumption of Wirecard UK Operations Including Reactivation of Crypto Cards
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Wirecard Solutions UK is back in business according to a statement released by the UK financial regulator the Financial Conduct Authority (FCA) on Monday.

This follows a three-day suspension of activities that saw several Wirecard-issued Visa cards such as Crypto.com, TenX’s, and Cryptopay among others become inactive over the weekend and on Monday.

However, according to the FCA, the regulator worked closely with the company to ensure the resumption of services as soon as possible.

“We have been working closely with Wirecard UK and other authorities over the last few days to ensure that the firm 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,” the statement reads.

Wirecard Solutions has since resumed services as of 00:01 GMT on June 30, 2020. This means that any card services companies that were affected by the suspension are able to resume services as well.

According to statements from Crypto.com and TenX, it seems that the two crypto companies are again supporting card services. This is in line with the statement given by FCA which stated that card services provided by WCS were expected to be back as soon as possible. “This means customers will now, or very shortly, be able to use their cards as usual.”

“If any customers are still experiencing difficulties in using their card[s], they should contact their card provider directly and should do so using the contact details on their website,” the FCA adds in its statement.

The FCA suspended operations of Wirecard on Friday, June 26th following a June 18th revelation that WCS parent company Wirecard AG’s executive had duped auditors close to 10 years by inflating sales figures and profits from its subsidiaries. This led to the discovery of a $2.1 billion cash shortfall in the company’s balance sheet discovered by Big Four accounting firm Ernst and Young.

Wirecard AG filed for bankruptcy on June 25th following the revelation of this scandal which precipitated the suspension of services by the FCA of the Wirecard AG subsidiary Wirecard UK the following day.

Despite the resumption of services, Wirecard UK is still under restrictions by the FCA to ensure that customer funds are protected.

“We continue to work with the firm and are monitoring it closely to ensure it meets the conditions we have imposed and continues to protect consumers’ money,” the FCA notes.

Some of the restrictions that are still in place include the inability to transfer company funds and restrictions on where the customer funds can be stored.


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