Cryptopay EU loses license, but assures customers that their card funds are secure.

On June 22, Cryptopay, the European Union debit card provider, lost its Electronic Money Institution (EMI) license, as stated in an email sent to its customers. The company advises EU cardholders to spend or transfer funds from their cards immediately, while also assuring that funds held in the app’s accounts are safe.

Cryptopay had been using UAB PayrNet, a licensed EMI in Lithuania, to provide debit card services to its EU customers. However, PayrNet’s license was revoked by Lithuania’s central bank, which puts users’ funds at risk of being temporarily stuck on their cards.

Only funds transferred to a user’s debit card would be affected, according to the email. For the rest, “this issue in no way influences your Cryptopay account which shall continue business as usual.”

Cryptopay recommends that funds already transferred to a card be spent or transferred away “as soon as possible.” Users can do this by buying crypto using the card, withdrawing cash from an ATM, transferring funds to a different card, or simply using the money in a store.

The company also clarified that even if a customer’s card stops working, the user can still recover the card’s funds from UAB PayrNet directly. Cryptopay offered to help coordinate this process if necessary.

Related: Binance Pay sees growing interest in Africa, Eurasia and Eastern Europe

According to a Cryptopay representative in an email conversation with Cointelegraph, the problem primarily affects users in the EU. However, users in the United Kingdom may be temporarily affected because the company has “switched off card services in order to maintain operational stability.” These services are expected to be back up and running within “a couple of days” in the United Kingdom.

Cryptopay head of support Konstantin Gorin stated that the company has dealt with banking system crises in the past, and he believes the company is ready to tackle this present challenge:

“This October it’s ten years on the market for us, we’ve seen worse. We’ve already been through similar situations in the past (back in 2018 when MasterCard and VISA pulled a plug on almost every existing crypto card programme and back in 2020 when Wirecard scandal hit the market), we’re confident that we’ll overcome this and keep on.

Gorin also claimed that the team is already working on a new debit program, stating, “First order of business to make sure our affected clients are taken care of, next — we’re already working on a new card programme solution for them and for us.”

Debit card issuer Wirecard went bankrupt in June 2020, becoming one of the most used debit card providers for crypto companies, including Cryptopay. Cryptopay later relaunched its program with a different provider.

Despite continuing troubles in the crypto debit card industry, there are signs that debit card companies are becoming more favorable to crypto. In March, Mastercard announced that it would integrate stablecoins into its payment network within the Asia-Pacific region, allowing them to be accepted in the region wherever Mastercard is.

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