In a surprising twist of events, the provider of debit cards for Cryptopay within the European Union (EU) has recently suffered a significant setback. In an email sent to its customers on June 22, it was revealed that the UAB ParyNet has lost its Electronic Money Institution (EMI) license.
Cryptopay had partnered with UAB PayrNet, an authorized Electronic Money Institution (EMI) based in Lithuania, to offer debit card services to its customers in the European Union. However, a new event occurred when the central bank of Lithuania decided to cancel PayrNet’s license. This sudden turn of event raised concerns about the potential temporary immobilization of users on their debit cards.
EU cardholders are strongly advised by Cryptopay to take immediate action by either utilizing or transferring funds from their cards.
According to the email, the situation’s impact would be tied to funds transferred to the user’s debit card. It is emphasized that “this issue has no bearing on your Cryptopay account, which will continue to operate normally.”
Cryptopay advised users who have already transferred funds to their cards to take prompt action by either utilizing the funds for purchasing cryptocurrency, withdrawing them as cash from an ATM, transferring them to an alternative card, or simply spending the money at a physical store.
Furthermore, Cryptopay clarified that in the event of a customer’s card becoming non-functional, the user still has the option to directly retrieve the funds from UAB PayrNet. In a show of support, Cryptopay extended their willingness to assist in coordinating this process if such action becomes necessary.
According to an email, a representative from Crypotpay provided clarification regarding the issue, stating that it primarily impacts users in the EU. While users in the United Kingdom may experience temporary disruptions, this is due to the company’s decision to temporarily disable card services to ensure operational stability. The representative assured that these services will be restored within a few days for users in the UK.
Konstantin Gorin, the head of support at Cryptopay, expressed confidence in the company’s ability to handle the currency challenge, citing past experiences with banking system crises.
He further added that, “This October it’s ten years on the market for us, we’ve seen worse. We’ve already been through similar situations in the past (back in 2018 when MasterCard and VISA pulled a plug on almost every existing crypto card programme and back in 2020 when Wirecard scandal hit the market), we’re confident that we’ll overcome this and keep on.”
Additionally, Gorin mentioned that the team is actively addressing the situation by developing the news debit program. He emphasised that, “ first order of business to make sure our affected clients are taken care of, next — we’re already working on a new card programme solution for them and for us.”