Cryptopay EU Card Provider Loses License, Funds Remain Safe

• Cryptopay EU card provider loses license from Bank of Lithuania
• Funds held in the app are safe, but customers must spend or transfer funds from card soon
• Issue affects EU customers and UK customers will see services limited for a few days

Cryptopay EU Card Provider Loses License

The European Union debit card provider for Cryptopay has lost its Electronic Money Institution (EMI) license, according to a June 22 email sent to its customers. The company recommends to EU cardholders that they should immediately spend or transfer funds from their cards.

Funds Held In App Are Safe

Funds held in the app’s accounts are safe, Cryptopay told Cointelegraph. An email stated that only funds transferred to a user’s debit card would be affected. Otherwise, “this issue in no way influences your Cryptopay account which shall continue business as usual.”

Issues Affecting Customers

As for funds that have already been transferred to a card, Cryptopay recommends that they be spent or transferred away “as soon as possible.” This can be done by using the card to buy crypto, withdrawing it as cash from an ATM, transferring it to a different card or simply spending the money at a store. Cryptopay also clarified that even if a customer’s card stops working, the user can still recover the card’s funds from UAB PayrNet directly.

UK Customers Affected Too

Cryptopay had been using UAB PayrNet, a licensed EMI in Lithuania, to provide its EU customers with debit card services. But PayrNet’s license was revoked by Lithuania’s central bank, leading to the risk that users’ funds may become temporarily stuck on their cards. However, users in the United Kingdom may be temporarily affected because the company has “switched off card services in order to maintain operational stability.“ These services should be back up and running within “a couple of days“ in the United Kingdom.

Company Ready To Tackle Challenge

Cryptopay head of support Konstantin Gorin stated that the company has dealt with crises from the banking system in the past, and he believes the company is ready to tackle this present challenge: “This October it’s ten years on the market for us, we’ve seen worse