Should You Get A Crypto.com CRO Visa Card? The Truth Revealed..
Crypto.com cards were blocked due to Wirecard bankruptcy
Wirecard Bankruptcy Causes Crypto.com Debit Cards Blocked.
Crypto.com management assures funds are safe.
How long Crypto.com card blocking will last remains unknown.
The bankruptcy of one of the largest German payment systems Wirecard affected the functioning of debit cards of the cryptocurrency company Crypto.com.
The scandal around the large German financial company Wirecard AG has now affected its partners.
After the former head of Wirecard Marcus Brown was arrested on suspicions of overstating the company’s revenues, and Wirecard itself later declared bankruptcy, the functioning of the debit cards of the cryptocurrency company Crypto.com was frozen..
According to Crypto.com’s official announcement, the UK Financial Conduct Authority (FCA) has ordered the company to stop all card transactions in the UK and Europe..
“Our clients in these two regions will not be able to top up their cards or make transactions,” the announcement says..
The company claims that customer funds are safe.
Crypto.com said they are already working on transferring the card program to a new provider to resume card issuance in the UK and Europe.
Previously BeInCrypto editors reported, that Wirecard was at the center of a $ 2.1 billion scandal following an audit by Ernst & Young (EY).
The company then said that Brown’s resignation was “by mutual agreement.”.
Olympus Has Fallen
In just a couple of days after the Wirecard scandal reached the mainstream media, the company’s stock plummeted more than 85%.
It is noteworthy that before the arrest of the head of Wirecard, Crypto.com CEO Chris Marsalek assured that debit cards for Crypto.com, the issuer of which was Wirecard, were fully secured.
How long the blocking of debit cards will last remains unknown.
The Wirecard scandal may well affect the regulation of the cryptocurrency industry.
Germany is known for its loyal attitude to cryptocurrency transactions.
According to current legislation, holders of virtual assets are exempted from paying tax on profits that were received as a result of transactions with cryptocurrencies.
However, businesses are still required to pay taxes on profits generated from bitcoins through corporate income taxes..
Criminal lawyer Katie Schroeder has already called the Wirecard situation “the biggest accounting scandal in Germany” and there are no guarantees that the potential tightening of the German financial market will not affect the cryptocurrency sector.
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