European crypto-currency cards are reactivated when the FCA allows Wirecard to run again

Crypto debit cards issued by companies such as Crypto.com and TenX have been reactivated after permission from the UK’s Financial Conduct Authority, or FCA.

On June 29, the UK regulator allowed Wirecard Card Solutions, a Newcastle-based subsidiary of troubled German company Wirecard AG, to resume its regulated activity. FCA suspended Wirecard Card Solutions‘ licence on 26 June, shortly after news emerged that Wirecard AG had misrepresented over USD 2 billion in cash reserves.

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The respective restrictions were lifted at 00:01 GMT on June 30, 2020, meaning that all Wirecard issued crypto-currency debit cards have been re-enabled. The regulator stressed that there are still „requirements imposed on Wirecard’s authorization“.

The news has been confirmed by Crypto.com and TenX, who announced that their crypto debit cards are now usable again.

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Wirecard is in big trouble

The scandal began on June 18, when the auditors of the Big Four accounting company, EY, were unable to confirm the existence of $2.1 billion in cash. As previously reported by the Financial Times, Wirecard’s staff in Dubai and Dublin had allegedly misled EY for nearly 10 years by conspiring „to fraudulently inflate the sales and profits of Wirecard’s subsidiaries.

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On 25 June, the troubled company filed for bankruptcy, which could be seen as a first step towards bankruptcy. Wirecard’s shareholders have already filed legal proceedings against EY for its alleged negligence in the company’s audit.

Markus Braun, Wirecard’s former CEO, was arrested by police in Munich after he was accused of falsifying the company’s balance sheets.

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