Cryptocurrency debit cards from companies like Crypto.com and TenX have been reactivated after approval by the UK Financial Conduct Authority (FCA).
On June 29, the British watchdog approved Wirecard Card Solutions, a Newcastle-based subsidiary of the troubled German company Wirecard AG, Resumption of regulated activity. The FCA suspended the Wirecard Card Solutions license on June 26, shortly after it became known that Wirecard AG had misrepresented more than $ 2 billion in cash reserves.
The restrictions were lifted at 00:01 GMT on June 30, 2020, which means that All cryptocurrency debit cards issued by Wirecard have been reactivated. The regulator emphasized that “requirements for Wirecard’s approval are still being made”.
The message was confirmed by Crypto.com and TenX announced that their crypto debit cards are now reusable.
Wirecard is in big trouble
The scandal began on June 18 when the auditors at Big Four, EY, were unable to confirm the existence of $ 2.1 billion in cash. As previously reported by the Financial Times, Wirecard employees in Dubai and Dublin allegedly cheated on EY for almost 10 years by plotting to “fraudulently increase Wirecard subsidiary sales and profits.”.
On June 25, the troubled company filed for bankruptcy, which could be seen as a first step toward bankruptcy.. Wirecard shareholders have already initiated legal proceedings against EY for alleged negligence in reviewing the company.
Markus Braun, the former CEO of Wirecard, was arrested by the police in Munich after being accused of falsifying the company’s balance sheets.