A sudden jolt has hit EU Cryptopay cardholders, with the impending disruption in service due to the Electronic Money Institution (EMI) license revocation of UAB PayrNet, the card provider. In an announcement dated June 22, Cryptopay warned its users that the EU debit card service might soon be compromised, advising the cardholders to promptly transfer or spend the balance on their cards. Regardless of the circumstances, Cryptopay assured that funds in their users’ app accounts remain secure.
Historically, Cryptopay utilized the services of UAB PayrNet, an authorized EMI from Lithuania, to cater to its European user base’s debit card needs. With the Lithuanian central bank’s recent action nullifying PayrNet’s license, concerns have arisen that the cardholders’ funds might face temporary lockdown.
In an official communique, it was clarified that the funds deposited in the Cryptopay accounts remain unaffected and it is only the balance on the debit cards that might be at risk. The company also recommended that these funds be expediently used or transferred to avoid potential loss. Customers can carry this out by purchasing cryptocurrencies, withdrawing cash from an ATM, transferring to another card, or making purchases at retail stores.
Despite the issue at hand, Cryptopay has emphasized that if the card ceases to function, users can retrieve their funds directly from UAB PayrNet. The company further offered its assistance to streamline this retrieval process if required.
Clarifying the scope of this disruption, a Cryptopay representative explained to Cointelegraph that the primary impact zone would be the European Union. However, some effects might be felt in the UK due to the temporary halt of card services for operational stability maintenance. These services are expected to resume in a few days.
Reflecting on the situation, Cryptopay’s head of support, Konstantin Gorin, showcased optimism based on the company’s decade-long experience and past instances of overcoming banking system crises. He stated, “We’ve seen worse. We’ve already been through similar situations… we’re confident that we’ll overcome this and keep on.”
Gorin also disclosed that a new debit program is in the works to cater to the affected clients and to future-proof the company’s offerings.
The cryptocurrency debit card industry has seen its fair share of upheavals, with a prominent player, Wirecard, going bankrupt in June 2020. However, amid the ongoing challenges, there are positive signals too. Earlier this year, Mastercard announced plans to incorporate stablecoins within its payment network in the Asia-Pacific region, signaling a more receptive stance towards cryptocurrencies.
Understanding these dynamics, the importance of having alternative solutions to handle such instances of disruption becomes clear. Whether it is the introduction of blockchain technology for better transparency and accountability or collaborations with multiple financial institutions for uninterrupted service, preemptive measures can help mitigate the impact of such crises in the future. Thus, while Cryptopay’s issue serves as a wakeup call, it also opens up possibilities for more robust and resilient solutions in the evolving landscape of cryptocurrency debit cards.