Cryptopay EU Card Provider Faces License Revocation, Urges Users to Safeguard Funds

TL;DR Breakdown

  • Cryptopay, an EU debit card provider, has lost its Electronic Money Institution (EMI) license due to the revocation of UAB PayrNet’s license by the Bank of Lithuania.
  • While funds held in Cryptopay accounts remain secure, users are advised to spend or transfer funds from their cards to mitigate potential disruptions. Cryptopay is working on a new debit card program to address the needs of affected users.

Description

Cryptopay, a popular European Union (EU) debit card provider for cryptocurrency users, has recently faced a setback as its app’s provider, UAB PayrNet, had its Electronic Money Institution (EMI) license revoked by the Bank of Lithuania. The revocation of the license raises concerns that EU cardholders may experience disruptions in their card services.  However, Cryptopay … Read more

Cryptopay, a popular European Union (EU) debit card provider for cryptocurrency users, has recently faced a setback as its app’s provider, UAB PayrNet, had its Electronic Money Institution (EMI) license revoked by the Bank of Lithuania. The revocation of the license raises concerns that EU cardholders may experience disruptions in their card services. 

However, Cryptopay reassures users that funds held in the app’s accounts remain safe. In response to the situation, Cryptopay advises its customers to immediately spend or transfer funds from their cards to mitigate any potential inconvenience. While the company acknowledges the temporary impact on EU cardholders, it emphasizes that the issue will not affect the overall functioning of Cryptopay accounts. Furthermore, Cryptopay reveals plans to introduce a new debit card program to address the needs of affected clients and the company itself.

EMI License Revoked, EU Cardholders Advised to Secure Funds

The Bank of Lithuania’s decision to revoke UAB PayrNet’s EMI license has raised concerns among Cryptopay’s EU cardholders. An email notification sent to customers on June 22nd stated that only funds transferred to the user’s debit card would be affected. However, Cryptopay assures customers that their funds held within the Cryptopay accounts are secure and unaffected by the license revocation. 

To prevent any potential inconveniences, Cryptopay strongly recommends EU cardholders promptly spend or transfer the funds from their cards. Several options are available for users to move their funds, including purchasing cryptocurrencies, withdrawing cash from ATMs, transferring funds to a different card, or utilizing the money for purchases at retail stores.

Cryptopay’s Assurance and Assistance to Affected Users

While the potential disruption of card services may cause inconvenience to EU cardholders, Cryptopay assures users that their accounts will continue to operate normally. The company emphasizes that the issue primarily affects users in the EU, although customers in the United Kingdom may also experience temporary disruptions due to the company’s decision to switch off card services temporarily to maintain operational stability. However, Cryptopay reassures users that these services will be restored within a couple of days in the United Kingdom.

To address any concerns about the safety of funds stored on their cards, Cryptopay informs users that they can still recover their card’s funds directly from UAB PayrNet. In case of assistance is required, Cryptopay offers to coordinate the process. Drawing from their experience in handling crises within the banking system, including the Wirecard scandal in 2020 and the Mastercard and VISA card program suspension in 2018, Cryptopay’s head of support, Konstantin Gorin, expresses confidence in the company’s ability to overcome the present challenge.

Cryptopay’s Future Plans and the Evolving Crypto Debit Card Industry

In response to the license revocation, Cryptopay is already working on a new debit card program to cater to the needs of its affected clients and the company itself. This proactive approach demonstrates Cryptopay’s commitment to ensuring its users’ seamless experience and underscores its determination to adapt to changing circumstances. The company’s resilience in the face of previous challenges in the banking system instills confidence in its ability to navigate the current situation successfully.

While Cryptopay’s predicament highlights the ongoing troubles faced by crypto debit card providers, the industry is also witnessing positive developments. In March, Mastercard announced its plans to integrate stablecoins into its payment network within the Asia-Pacific region, enabling widespread acceptance of stablecoins wherever Mastercard is accepted. Such initiatives indicate a growing openness of traditional debit card companies toward cryptocurrencies, paving the way for future collaborations and innovations in the space.

Conclusion

Cryptopay’s EU cardholders are advised to take immediate action to secure their funds following the revocation of UAB PayrNet’s EMI license by the Bank of Lithuania. Despite potential disruptions in card services, Cryptopay assures users that their funds held in Cryptopay accounts remain safe. The company recommends spending or transferring funds from the cards promptly and offers assistance in recovering funds from UAB PayrNet if necessary. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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