Visa has made a key announcement regarding cryptocurrency cash cards. On January 5th, 2018, Visa announced the immediate suspension of services for a handful of cryptocurrency cards, causing confusion and disappointment among users. This sudden suspension, is an indirect result of the suspension of WaveCrest, the Gibraltar-based company that provided cryptocurrency companies with cash card service options.
Why Did Visa Pull the Plug and What Will Happen Now?
The companies affected by the sudden suspension are some of the most popular cryptocurrency cash card including:
- Bitwala – Founded in 2015
- CryptoPay – Founded in 2013
- Wirex – Founded in 2015
- TenX – Founded in 2017
All the above got their Visa services from WaveCrest, which is essentially why these brands were cut off. Most of these companies are relatively young, with CryptoPay being the most seasoned, founded in 2013. This blow to some of the most trusted names in the industry is startling, but apparently, it was bound to happen. According to a recent report released by Visa, WaveCrest’s rights and membership was cut off due to ‘non-compliance with operating rules’. As a result of the breach, all WaveCrest Visa cards and projects will be indefinitely closed.
Although Visa cryptocurrency cash cards were a staple in this segment of the market, there are other alternatives. WaveCrest is simply of one few credit card issuers in the cryptocurrency ecosystem, and none of the others will be affected by this Visa decision. Nevertheless, until the cryptocurrency service providers find an alternative, users will be left without their cryptocurrency cash card option, although their cryptocurrency-denominated funds are expected to be returned to their wallets.
A WaveCrest representative declared in a recent interview that the company “deeply regrets the inconvenience that this has caused to all of our customers affected by this decision” – according to The Telegraph. Although users should still be able to access their funds via their e-wallets, they will have to find another way to use their funds. We might see some more backlash against WaveCrest and its partners in the cryptocurrency space in the days to come. Users are advised to follow the official social media accounts of their providers for more updates.