Cryptopay Card Provider Loses EU License

The Bank of Lithuania revoked the Electronic Money Institution license from the EU-based debit card provider for the Cryptopay service — UAB Payrnet.

The regulator acted due to “serious, systematic and repeated breaches of regulatory norms.” In particular, UAB Payrnet failed to comply with anti-money laundering and counter-terrorist financing requirements and violated international sanctions.

“The company did not possess all data on the number of customers using its services, did not control data on end-user payment transactions and did not have the ability to determine the exact amount of their funds,” the central bank said.

The Bank of Lithuania also logged around 50 complaints against UAB Payrnet. It unilaterally terminated contracts with customers without notice and did not return the funds remaining in their accounts.

The representatives of Cryptopay in conversation with Cointelegraph assured users that assets in the app are safe. The licensing issue affects only the service’s debit cards, so the company recommended spending or transferring funds “as soon as possible”.

Cryptopay also clarified: if a customer’s card stops working, they will still be refunded directly through UAB PayrNet.

The issue primarily concerns EU users, though temporary disruptions could also affect the UK, as the company has suspended card services to maintain operational stability.

“This October marks ten years for us; we have seen worse times. Cryptopay has faced similar situations in the past. Back in 2018, when Mastercard and Visa disabled almost all existing cryptocurrency card programs, and in 2020, when the Wirecard scandal erupted on the market. We are confident that we will overcome this and continue to operate,” said Cryptopay’s Head of Support Konstantin Gorin.

He added that the team is already working on a new debit program, but first will prioritise helping affected customers.

Many trading platforms already offer their own crypto cards, including Blockchain.com, Huobi, Bybit and BitOasis and Gate.io.

In June, regulators in Thailand revoked Huobi’s license, as the exchange did not bring its staffing structure and internal systems into compliance with regulatory requirements.