iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
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Visa Shuts Down Crypto Credit Card Company Without Warning: “All the Cards Were Shut Down in One Second”

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.

Monaco, another Bitcoin based debit card, reassured people they were not affected by the shut down.

People are understandably upset.

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.

The 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.

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23 comments

  1. Cricket

    What took them so long?

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  2. small pleb

    https://imgflip.com/i/2274fg

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  3. chuck bennett

    Yes. So long is right.

    Crypto will put visa and MasterCard out of business. Theoretically speaking of course

    Regards,

    Chuck Bennett

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    • bob smith

      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…

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  4. sarcrilege

    whoops! nobody panic! all is well. the exit door will remain open forevah. the banksters said so.

    • 3
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  5. badduck

    +MCB

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  6. it is showtime

    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

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    • chuck bennett

      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

      • 0
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    • lesurgeon

      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.

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      • it is showtime

        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

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      • bob smith

        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.

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  7. soupbone

    Sounds like a case of self regulate else get more regulated, always better to self regulate.

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  8. clock

    …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.

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  9. it is showtime

    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?

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  10. Cricket

    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.

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    • heaterman

      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.

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      • Cricket

        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.

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        • sarcrilege

          …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.

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