FCA suspends Wirecard subsidiary that issues crypto cards

by in Cryptocurrency News

Wirecard

The UK Financial Supervisory Authority (FCA) has suspended its Wirecard subsidiary, Wirecard Card Solutions (WCS), which issues Visa debit cards for the cryptocurrency companies Crypto.com and TenX.

On Friday, the FCA stated that the WCS “is no longer allowed to conduct any organized activities” and “dispose of any assets.”

Over the past few days, the regulator has been working closely with Wirecard UK and other authorities to take measures to protect consumer rights. “Since June 26, we have been taking additional measures and require companies to cease all regulated activities to protect clients’ funds. That means that customer money is becoming unavailable, ”the FCA said in a statement.

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Another subsidiary of Wirecard, Wirecard Singapore, also issues crypto debit cards. Singapore regulators have yet to take action on the company.

Wirecard filed for bankruptcy yesterday in a Munich court “due to excessive debt.” Last week, an EY auditor said that he could not find evidence of wire funds in Wirecard's trust accounts worth €1.9B. The organization said it was assessing the need for filing bankruptcy applications for its subsidiaries.