Central Bank of Lithuania withdrew an Electronic Money Institution license from a debit card provider in the European Union for the Cryptopay service – UAB Payrnet.
The regulator took action due to “serious, systematic and repeated violations of legal norms.” In particular, UAB Payrnet did not comply with the requirements for the prevention of money laundering and terrorist financing, and also violated international sanctions.
“The company did not have all the data on the number of customers using its services, did not control the data on the payment transactions of end users and was not able to determine the exact amount of their funds,” the Central Bank said in a statement.
In addition, the Bank of Lithuania recorded about 50 complaints against UAB Payrnet. The institution unilaterally, without warning, terminated contracts with clients and did not return the funds remaining on the accounts.
Representatives of Cryptopay in conversation with Cointelegraph assured users that the assets in the application are safe. The situation with the license affects only the service’s debit cards, so the company recommended spending or transferring funds “as soon as possible.”
Cryptopay also clarified: if the client’s card stops working, he will still be returned the money directly through UAB PayrNet.
The problem primarily affects users in the EU, but temporary difficulties may also arise in the UK, as the company “turned off card services to maintain stability.”
“This October we turn ten years old, we have seen the worst [времена]. Cryptopay have already faced similar situations in the past. Back in 2018, when Mastercard and Visa shut down almost all existing cryptocurrency card programs, and in 2020, when the Wirecard scandal hit the market. We are confident that we will overcome this and continue to work, ”said Konstantin Gorin, head of support for Cryptopay.
He added that the team is already working on a new debit program but will take care of affected customers “first and foremost”.
Many trading platforms already have their own crypto cards, including Blockchain.comHuobi, Bybit and BitOasis and Gate.io.
Recall that in June, Thai regulators revoked Huobi’s license because the exchange did not bring its “staff structure and internal systems” into line with regulatory requirements.
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Central Bank of Lithuania withdrew an Electronic Money Institution license from a debit card provider in the European Union for the Cryptopay service – UAB Payrnet.
The regulator took action due to “serious, systematic and repeated violations of legal norms.” In particular, UAB Payrnet did not comply with the requirements for the prevention of money laundering and terrorist financing, and also violated international sanctions.
“The company did not have all the data on the number of customers using its services, did not control the data on the payment transactions of end users and was not able to determine the exact amount of their funds,” the Central Bank said in a statement.
In addition, the Bank of Lithuania recorded about 50 complaints against UAB Payrnet. The institution unilaterally, without warning, terminated contracts with clients and did not return the funds remaining on the accounts.
Representatives of Cryptopay in conversation with Cointelegraph assured users that the assets in the application are safe. The situation with the license affects only the service’s debit cards, so the company recommended spending or transferring funds “as soon as possible.”
Cryptopay also clarified: if the client’s card stops working, he will still be returned the money directly through UAB PayrNet.
The problem primarily affects users in the EU, but temporary difficulties may also arise in the UK, as the company “turned off card services to maintain stability.”
“This October we turn ten years old, we have seen the worst [времена]. Cryptopay have already faced similar situations in the past. Back in 2018, when Mastercard and Visa shut down almost all existing cryptocurrency card programs, and in 2020, when the Wirecard scandal hit the market. We are confident that we will overcome this and continue to work, ”said Konstantin Gorin, head of support for Cryptopay.
He added that the team is already working on a new debit program but will take care of affected customers “first and foremost”.
Many trading platforms already have their own crypto cards, including Blockchain.comHuobi, Bybit and BitOasis and Gate.io.
Recall that in June, Thai regulators revoked Huobi’s license because the exchange did not bring its “staff structure and internal systems” into line with regulatory requirements.
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Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!