The Bank of Lithuania has revoked the Electronic Money Institution (EMI) license of UAB PayrNet, the card provider for Cryptopay in the European Union. This has raised concerns about Cryptopay’s debit card services for EU customers, as their funds may become temporarily stuck on their cards. The company has advised its users to spend or transfer their funds immediately and clarified that only funds transferred to a user’s debit card would be affected. Cryptopay has also assured its customers that the funds held in the app’s accounts are safe. Meanwhile, Cryptopay head of support Konstantin Gorin claims that the company is ready to tackle this present challenge and already working on a new card program solution for its affected clients.
This incident highlights the continuing troubles in the cryptocurrency debit card industry, which has experienced similar crises in the past. However, there are also signs that debit card companies are becoming more favorable to crypto, such as Mastercard’s announcement in March to integrate stablecoins into its payment network within the Asia-Pacific region.
Overall, the revocation of Cryptopay’s EMI license serves as a reminder of the importance of regulation in the cryptocurrency industry and the potential risks involved in investing and storing funds in digital assets.