Bitcoin users of Europe faces trouble as Bitwala, Cryptopay, Wirex, and TenX, suspend their services today. The move comes as a result of actions taken by Visa Europe against WaveCrest, the presumed card issuer for the above mentioned pre-paid crypto debit card providers.
Bitcoin is a cryptocurrency that came into existence in 2009, becoming the first decentralized virtual currency. Companies like Bitwala and TenX provide their users with the ability to use cryptocurrencies for traditional transactions by providing them with debit cards primarily issued by either Visa or MasterCard. Such users often replace traditional currencies with cryptocurrencies for their day-to-day expenditure. Thus, company’s move of the terminating the WaveCrest’s membership has left thousands stranded without funds.
Following an announcement from our card issuer on behalf of Visa Europe, Bitwala cards are taken out of operation starting today. Our team is holding an emergency meeting to resolve the issue with the card holders best interest in mind and will make an update shortly.
— Bitwala (@bitwala) January 5, 2018
#TenX advisory: Following an urgent communication from our card issuer WaveCrest, payments on the TenX card will be unavailable. We are working on a solution and will let you know further details as soon as we have them. We apologise for the inconvenience.
— TenX (@tenxwallet) January 5, 2018
Unfortunately, our card issuer instructed us to cease all Cryptopay prepaid cards starting January 5th, 2018. All funds stored on cards are safe and will be returned to your Cryptopay accounts ASAP. Sorry for all the inconvenience caused, we’re working on the solution!
— Cryptopay (@cryptopay) January 5, 2018
In a statement issued by Visa Europe, the company has confirmed its move to terminate WaveCrest’s Visa membership due to continued non-compliance with their operating rules. While Visa Europe assures that the move has been taken against one company, and it is not an attack on the general idea of cryptocurrencies, Bitwala has the following to say about the move:
“The decision also symbolizes that Visa, and by proxy other traditional finance corporations, is not willing to service the growing crypto economy. This, in turn, motivates us to proceed further with our vision of building a crypto first bank which provides a bitcoin debit card with uninterrupted service.”
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Users who have received emails from WaveCrest say that the emails have confirmed that while the users’ funds remain safe with the digital wallet providers, their WaveCrest-issued card will no longer be functional as Visa suspends the cryptocurrency card. In tweets posted, the card providers have assured their users that they are arranging emergency meetings and are trying their best to find a speedy solution to the problem.