Cryptopay EU: License Revoked, Assures Safety of Card Funds

New EU directive to increase monitoring of Crypto markets and combat tax evasion

Cryptopay serves as a custodial platform for digital assets, facilitating the integration of digital currency and traditional finance. Cryptopay was created by Dmitry Gunyashov and George Basiladze in 2013, and it has been operating as a trusted digital currency service provider in Europe for a long time.

Key features

1. Crypto Wallet: enables users to securely deposit, store, and withdraw an extensive range of 37 cryptocurrencies in their crypto wallet.

2. Crypto and fiat exchange: instant and easy off-chain conversion for both crypto and fiat (GBP and EUR)

3. Bank card crypto purchases:Buy crypto effortlessly and swiftly using your own VISA or Mastercard debit or credit card.

4. Cryptopay VISA cards: users can get a virtual or a plastic prepaid VISA card that they can easily load with their crypto and fiat assets (available for UK/EEA users only).

License Revoked

Cryptopay, the debit card provider in the European Union, has recently had its Electronic Money Institution (EMI) license revoked. In an email sent to customers on June 22, the company informed EU cardholders about the situation and advised them to promptly utilize or transfer the funds available on their cards. However, it reassured users that the funds stored within the app’s accounts are secure and unaffected.

Cryptopay had partnered with UAB PayrNet, a licenced Electronic Money Institution (EMI) based in Lithuania, to offer debit card services to its customers in the European Union. However, the Lithuanian central bank recently revoked PayrNet’s license, which poses a potential risk of users’ funds getting temporarily trapped on their cards.

An email stated that only funds transferred to a user’s debit card would be affected. Otherwise, “this issue in no way influences your Cryptopay account, which shall continue business as usual.”

If you have already transferred funds to your Cryptopay card, it is advised to spend or transfer them “as soon as possible.” You can do this by purchasing cryptocurrencies using the card, withdrawing cash from an ATM, transferring the funds to another card, or simply making purchases at a store.

Cryptopay assured customers that in the event of their card becoming inactive, they could still retrieve the funds directly from UAB PayrNet. If such a situation arises, Cryptopay is ready to assist and facilitate the coordination process to ensure a smooth recovery of the funds.

According to Cryptopay’s head of support, Konstantin Gorin, the company has successfully navigated previous challenges arising from the banking system. He expressed confidence that Cryptopay is well-prepared to handle the current situation and overcome the present challenge.

“As we approach our ten-year milestone in October, we have encountered more challenging times in the past. We have faced similar situations before, such as when MasterCard and Visa disrupted numerous existing crypto card programmes in 2018 and during the Wirecard scandal in 2020. Drawing from our experience, we are confident in our ability to overcome the current obstacle and continue our journey.”

Gorin also mentioned that the team is actively developing a new debit programme. He emphasized that their top priority is ensuring that their affected clients receive proper assistance. Additionally, they are already in the process of creating a new card programme solution, which will benefit both the clients and the company.

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