The quick and popular way of instantly having access to your cryptocurrency via prepaid debit card has been temporarily put on hold across multiple crypto debit card service providers. Visa has terminated their partnership with WaveCrest Holdings, a global payment solutions company, after Wavecrest broke TOS.
Wavecrest Holdings, a global payment solutions company, is the issuing partner for most major cryptocurrency debit card companies like Bitwala, Tenx, Wirex, CoinsBank, and more. Earlier this morning crypto debit card providers began issuing emails and posting tweets updating users how their cards no longer work effective immediately but their funds are safe and still accessible through their digital wallets. Providers are set to already find a new partner company to reinstate their debit card usage.
All though many think this is an attack on crypto, that’s not quite the case. Monaco has informed users of their debit card will not be affected. Their card is not issued through WaveCrest Holdings, their partner is Wirecard AG, a well-known global financial entity.
It has not been stated how WaveCrest violated operating rules though many speculate the new Gibraltar (home office of WaveCrest) regulations that would require distributed ledger technology providers to apply for and obtain a special license may be related.