Visa locks down prepaid cryptocurrency cards, hitting bitcoin and ethereum users

 Shoppers using cryptocurrencies like bitcoin and ethereum were  hit after Visa locked down some pre-paid cards by blocking a single  provider. BitPay, Cryptopay and Bitwala have all had their cards suspended as  of 5 January, meaning they cannot be used to pay for goods on the high  street. Their services are provided through WaveCrest, which is based in Gibraltar. The pre-paid cards allow users to buy leading cryptocurrencies such  as bitcoin and ethereum, transfer them onto the card and use them in the  same way as a traditional bank card.  

 Visa said in a statement: “We can confirm that WaveCrest’s Visa  membership is being terminated due to non-compliance with our operating  rules. All WaveCrest-issued Visa card programmes will be closed as a  result. “The termination of WaveCrest’s Visa membership does not affect other  Visa issuers’ card programmes, including those using fiat funds  converted from cryptocurrency. “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.”

 

All three of the pre-paid cryptocurrency card companies took to social media to release statements about the suspension.  BitPay said: “Yesterday our European BitPay card issuer received  direction from Visa to immediately close all accounts of its prepaid  Visa debit programs”.  In its statement Cryptopay said all funds would be returned to users. “Unfortunately, our card issuer instructed us to cease all Cryptopay prepaid cards starting 5 January, 2018.” Bitwala said it would hold an “emergency meeting” in an attempt to resolve the issue.  “Following an announcement from our card issuer on behalf of Visa  Europe, Bitwala cards are taken out of operation starting today. Our  team is holding an emergency meeting to resolve the issue with the card  holders' best interest in mind and will make an update shortly.”