Visa Cuts off Crypto Cards

Visa's sudden decision to rescind services for cryptocurrency credit cards may have left some people temporarily stranded abroad without access to funds.

On January 5, 2018, WaveCrest, a card issuer working with cryptocurrency credit cards, including Bitwala, Cryptopay, Wirex, and TenX, announced that following an order from Visa Europe, it would suspend services immediately.

According to Visa Europe, WaveCrest's membership was terminated "due to noncompliance with our operating rules. All of WaveCrest's Visa card programmes will be closed as a result." The move by Visa doesn't encompass all cryptocurrency, however:

"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."
WaveCrest sent a letter to users warning of the impending card shutdown following Visa Europe's decision to rescind services. It reads:

"We, WaveCrest, are the issuer of your Visa Prepaid card, which you enrolled for through one of our program partners. Visa have today instructed us that we must close all WaveCrest issued Visa Prepaid Cards with immediate effect … Your WaveCrest-issued Visa Prepaid Card will no longer function. However, as your funds were stored in your e-wallet they will remain accessible to you via your wallet provider."