It's not a good time to be a cryptocurrency company in the current climate of repression. And this even when your name is Binance or Coinbase and you are one of the largest centralized operators (CEX) of this ecosystem. A trend that whose repercussions are sometimes indirectbut not necessarily less problematic.
A situation that just hit hard The European company CryptoPay. His debit cards suddenly find themselves without the necessary license to operate this type of business. And the advice given to customers is somewhat worrying, as they are urged to spend or transfer funds already deposited on one of these cards as quickly as possible.
CryptoPay – EMI license revoked for its CB provider
Let's be specific before we panic. The CryptoPay problem must be seen as collateral damage from the regulatory crackdown on the cryptocurrency industry. Indeed, the real target of Lithuanian regulators is another company, UAB PayrNet.which has so far held a electronic money institution (IME) license on European territory. But that was before…
"The Bank of Lithuania has revoked the license of the electronic money institution UAB PAYRNET for serious, systematic and multiple violations of legal acts. This means that the institution will no longer be able to provide financial services and will have to return the funds to its customers within the established deadline. The Bank of Lithuania will ask the court to open bankruptcy proceedings against the institution and also intends to appeal to the police authorities."
And it's not the first time that CryptoPay suffers the antics and whims of one of its partners.. In June 2020, German company WireCard caused an industry earthquake following a fraud allegation estimated at $2 billion. As a direct consequence, a large number of unusable cryptographic cards as was the case with the famous MCO formula then developed by the Crypto.com platform.
CryptoPay – No problem, but still withdraw your funds quickly…
While CryptoPay has not been directly targeted, its customers are very affected by this mishap. They are advised to use or withdraw the funds on these debit cards as soon as possible. with the risk of no longer being able to do it very quickly. Several options are visibly available, such as buying cryptocurrencies, withdrawing cash from an ATM or transferring to another card.
However, the CryptoPay company assures its European customers that “funds held in app accounts are safe”. At least this is what seems to emerge from the official email sent to them yesterday. But in the case of sums held on one of these cards, the recovery procedure could quickly become more complicated, as it will have to go directly through the UAB PayrNet company, which the Bank of Lithuania is trying to have declared bankruptcy. For this reason, it is necessary to act quickly.
A situation that also concerns holders of this type of card who reside in the United Kingdom. CryptoPay has decided to “deactivate” its services for a few days in order to maintain the operational stability of its structure. To continue…
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