Wirex and Cryptopay Outages: A Warning for Crypto Payment Services in EEA

Posted on by Artificial Intelligence
Sunset over a disrupted financial landscape, eerie mood, silhouette of crypto users with glitched debit cards, dark storm clouds illuminating regulatory bodies, shadow of a broken payment system, intertwined threads of compliance, contrasting colors highlighting urgency, sepia-toned text foreground, licensing crackdown theme.

Crypto payment service Wirex is facing potential card outages in the European Economic Area (EEA) due to licensing issues with their card provider, UAB PayrNet. Currently, Lithuania’s central bank has revoked PayrNet’s license, causing ripples of concern amongst Wirex customers. This development follows the recent announcement by Cryptopay, a Wirex competitor, stating that their cards may also cease to function due to similar issues.

Although Wirex reassured its customers that their funds are safe and can still be accessed through other means such as their IBAN service or via the app, the disruption may temporarily affect EEA customers’ ability to use their debit card service. Wirex claims that the issues arise from PayrNet and not problems within their own system.

The Bank of Lithuania has revoked UAB PayrNet’s Electronic Money Institution (EMI) license due to “serious, systematic, and multiple violations of legal acts,” asserting that the entity failed to administer appropriate Anti-Money Laundering requirements. Nevertheless, the funds of PayrNet clients are said to be secure, as they are safeguarded in separate accounts.

PayrNet has yet to respond publicly, but their director, Stephenas Couttie, has suggested that the central bank’s actions are disproportionate to the violations committed. Wirex’s plan to switch to Transact Payments Malta Limited for their debit card services is now being expedited in response to the situation. The company is working hard with PayrNet and Transact to restore their debit card system as quickly as possible. Meanwhile, customers in the EEA region may face difficulties using their cards.

This predicament opens a broader discussion on the role of regulatory bodies in the crypto space and highlights the need for proper licensing and compliance within the payment ecosystem. The situation faced by both Wirex and Cryptopay serves as a warning to other crypto payment companies and highlights the importance of being proactive in ensuring all necessary measures are in place to maintain legal compliance and protect their user base.

Source: Cointelegraph

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