In an unsettling development for users in the European Economic Area (EEA), Wirex, a cryptocurrency payment service, has intimated that its debit card functionality might be disrupted. The predicament arose as Lithuania’s central bank rescinded the permit of UAB PayrNet, the card provider in alliance with Wirex.
This announcement echoes the concerns raised by Wirex’s rival, Cryptopay, who too forewarned its customers about the potential discontinuation of its card services due to a similar issue.
Promoting a diverse range of financial services, Wirex is a holistic digital currency platform that enables fiat-crypto transactions and furnishes debit cards. With a staggering user base exceeding 3 million across Europe and Asia, it boasted significant reach in 2020.
In a customer communication, Wirex clarified that its card services for EEA clients may experience a pause owing to difficulties encountered by its current card partner. However, it reassured users that this would not hinder their access to funds via other avenues such as Wirex’s IBAN service or cryptocurrency transactions through the Wirex app.
Attributing the problem to UAB PayrNet, Wirex emphasised that its systems were functioning optimally.
On June 22, the Bank of Lithuania expressed its intention to revoke UAB PayrNet’s electronic money institution license, citing “serious, systematic and multiple violations of legal acts.” The central bank alleged that PayrNet was non-compliant with Anti-Money Laundering regulations, thereby making its services susceptible to illegal financing. Despite this, the Bank of Lithuania assured that client funds were securely held in separate accounts.
No official response has been received from UAB PayrNet till the point of drafting this article. However, PayrNet’s director, Stephenas Couttie, reportedly critiqued the central bank’s actions as “disproportionate to the violations committed,” according to a translation from Lithuanian news site Verslo Žinios.
In an effort to address the predicament, Wirex notified its customers about its plans to collaborate with Transact Payments Malta Limited for its debit card services. Originally planned for a later date, this transition has been expedited due to the ongoing crisis. Wirex remains committed to restoring its card services by working diligently with both PayrNet and Transact.
In the interim, customers residing in the EEA might face restrictions in using their Wirex cards.
Wirex, over the past two years, has diversified its service portfolio. In August 2022, it joined hands with 1inch to deliver wallet-based token swaps. Following this, in February 2022, it integrated with the Avalanche AVAX $13.33 network, thereby allowing users to deposit AVAX and transact through their debit cards.