Gibralta based payment solutions company, Wavecrest, was shut down by Visa today — stranding thousands of people with Bitcoin credit cards now effectively worthless.
Source: CNBC
The card provider, WaveCrest, confirmed in an email to CNBC that it was required “to immediately close all Visa cards.”
“As a licensed E-Money Institution, WaveCrest is required to safeguard funds to cover all of its issued electronic money and we can confirm that these funds are safe and available for redemption through other channels,” the statement read.
Visa, a payment network, did not immediately respond to a request for comment.
Wavecrest provided its services to a number of crypto-card companies, including Bitwala, Cryptopay, Wirex and TenX. These companies convert people’s cryptocurrencies into cash that is loaded on to a prepaid card, allowing people to use the currency for everyday transactions.
Now these cards are invalid.
Tenx is -19% and Cryptopay -18% on the news, a rather tepid response considering the news.
Apparently, Tenx is already working on a solution and have taken to Twitter to assuage users.
Card issuer WaveCrest apparently informed BTC debit card companies they must IMMEDIATELY close *all* non-US accounts.@BitPay, @tenxwallet, @wirexapp all issued statements to users.
Haven’t seen statements from @xapo, @bitwala yet, but I believe they use the same issuer.
— Udi Wertheimer [BIP84] (@udiWertheimer) January 5, 2018
#TenX advisory: Following an urgent communication from our card issuer WaveCrest, payments on the TenX card will be unavailable. We are working on a solution and will let you know further details as soon as we have them. We apologise for the inconvenience.
— TenX (@tenxwallet) January 5, 2018
Monaco, another Bitcoin based debit card, reassured people they were not affected by the shut down.
Following reports https://t.co/1oFajMzzlm https://t.co/Rp8TIGxU4v that WaveCrest has been told by Visa to close all WaveCrest issued Visa Prepaid Cards, we can confirm that @monaco_card and the Monaco Visa Card is not affected by this in any way. @Cointelegraph @TheNextWeb
— Monaco Card (@monaco_card) January 5, 2018
People are understandably upset.
@wirexapp Just got a scary email saying debit cards have been suspended by Wavecrest. Please update on this! Any other users with same issues?
— PrimateStudio (@Juguelio) January 4, 2018
According to Wirex, the shut down by Visa was without warning, saying “all the cards were shut down in one second.” Dmitry Lazarichev, CEO of Wirex said Wavecrest was not responding to their concerns: “we asked for more information, but they haven’t provided any.”
Wirex has over 500,000 crypto currency cards around the world
In a statement by Visa, they said the reason for the shutdown had nothing to do with crypto currencies, but the fact that Wavecrest was not in compliance with regulations.
We can confirm that WaveCrest’s Visa membership is being terminated due to continued non-compliance with our operating rules. All of WaveCrest’s Visa card programmes will be closed as a result.
Visa has other approved card programmes that use fiat funds converted from cryptocurrency in a number of jurisdictions. The termination of WaveCrest’s Visa membership does not affect these other products.
Visa is committed to the security of its ecosystem and compliance with Visa’s operating rules is critical for ensuring the safety and integrity of the Visa payment system. Our issuers’ card programmes must comply with our membership regulations, as well as all applicable laws.
A representative from Bitwala isn’t buying it.
If you enjoy the content at iBankCoin, please follow us on TwitterThe change came very suddenly which gave us no time to properly notify our customers. Right now assuring them is our first priority. The decision also symbolises that Visa, and by proxy other traditional finance corporations, is not willing to service the growing crypto economy. This in turn motivates us to proceed further with our vision of building a crypto first bank which provides a bitcoin debit card with uninterrupted service.
What took them so long?
https://imgflip.com/i/2274fg
Yes. So long is right.
Crypto will put visa and MasterCard out of business. Theoretically speaking of course
Regards,
Chuck Bennett
So, a bunch of basement-dwellers, who are keen on Krypto, will eliminate the deep-state-sponsored banking system and fiat-currency control of the world…
Ok, if you say so…
whoops! nobody panic! all is well. the exit door will remain open forevah. the banksters said so.
+MCB
You guys have no idea the devastation coming to society.
You’re on the cusp. You’re past the point of no return.
You’re sitting ducks.
And I was right
3+ 4+ yrs ago
How stupid can humans possibly be – the level and rate of increase for the first four trading days should be a red flashing threat alert – not a sign of celebration and emergence – that is often what you do though – interpret danger initially as mitigated
Showtime is Rising
Showtime,
It just came to me as I ride the subway down to my next adventure. Destination Soho House NYC.
Your cave must be well stocked with all the necessary food rations, blankets and such.
I promise you, you will be prepared for what is coming.
No doubt.
Cheerio-
Regards
Chuck Bennett
Cheerio(s)
Showtime– You said it yourself.. ‘3-4 year’s.
So, It’s just that–You were wrong for 3-4 years of the Angriest bull market in history.
I just don’t why you’d still be beating your chest here.
Like I said before, Sooner or late you’ll be right. BUT, by then, it won’t matter. You’ve been wrong for too long. You’ve already lost.
No one talks about 1923-1928, 05 06 07.
Except to say roaring 20s and house flipping.
It was the fakest bull phase in history. You’re wrong.
When the parabolic valuation endgame begins boombust
It crosses quickly over to how wise, legitimate, notable we were
(while being reviled and mocked, which matches the script to a T)
With respect, Le, You’re missing a few parts like shillerPe and machinations I have-been very-prescient on, And you sound like a shoeshine boy
lesurgeon: The antediluvians were wrong for 120 years before they were right. What’s your point? That being early is “wrong?” That rationale illustrates the intelligence of a ground worm.
Sounds like a case of self regulate else get more regulated, always better to self regulate.
…The decision also symbolises that Visa, and by proxy other traditional finance corporations, is not willing to service the growing crypto economy….
They want REAL money
…not magic money.
Watching Cnn? They [general use] are getting very, close to removing trump.
capish?
you really want to argue that low 9 vix doesnt directly reflect a ruse, where the
establishment wants to remove a president, as I said in january to february 16?
The stock market has a setup that would implode on a gamechanger, whether
or not you think it was designed that way
capish?
https://www.zerohedge.com/news/2018-01-05/fed-chair-makes-striking-admission-we-have-short-volatility-position
Bill Gates, John McAfee along with many other smart tech people have concluded that “Bitcoin is unstoppable”.
But the function, purpose and geopolitical foundations of CCs and Government Fiat are polar opposites, so how can CCs and the current financial system coexist? At the moment CCs are like an out-of-control, unstoppable virus infesting the host financial system.
In my view, there are only two ways this can end; either the host dies or a cure is found. In either case, it will not end well for civilization as we know it. The collapse of the existing financial system could well be the end of civilization as we know it. But the cure could be even worse.
My thoughts exactly.
E-currency is not usable in its present form by probably 60% of the worlds population.
How is grandma living on her savings and pension benefits going to convert? She doesn’t even own a computer.
What person in their right mind would accept their weekly paycheck or salary in the form of currency whose value can vary 20-30% in a days time?
Governments around the world have to be having these same thoughts given the sovereignty of their national wealth is becoming more threatened by the hour.
I don’t see a win for anyone coming from this.
The blockchain is the mother of all disruptive technologies.
So in the end will it be Mad Max or Winston Smith? That is the choice being laid out for us. The general population, like lemmings, are completely oblivious to it.
On the one hand, complete civilizational destruction. On the other, a boot stomping on the face of humanity forever.
…or something in between – decentralized society taking the power of the few away and giving it to the many. Evolution is an adaptive process; not a phase transition.