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Visa Shuts Down Prepaid Cryptocurrency Cards

The decision has taken users by surprise.

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Electronic payments company Visa has closed prepaid cryptocurrency cards, affecting companies including BitPay, Cryptopay, Bitwala, Wirex and TenX.

These cryptocurrency cards were issued by the Gibraltar-based card provider WaveCrest. Visa issued a statement regarding the shutdown, “[We] recently terminated a single prepaid card issuer in Europe from our network for violating Visa’s operating regulations. That issuer, WaveCrest, was required to close its Visa card products, some of which were linked to cryptocurrency wallets.”

Users were able to transfer cryptocurrencies such as Bitcoin and Ethereum to prepaid crytocurrency cards. They were then used to buy goods and services or to perform routine transactions. Through an email, WaveCrest informed CNBC that it has closed all Visa cards immediately.

TenX was the first company to make the announcement on Twitter.

BitPay informed its users of the sudden decision by releasing an official statement.

Bitwala announced that its team was working on resolving the situation.

Cryptopay followed suit with a similar statement.

Wirex apologized for the inconvenience, but promised users that new cards would be available in the future as they were working with a new card provider.

Users took to social media to express their anger towards Visa. Many claimed that the company was intentionally attacking the cryptoworld and cryptocurrencies. Visa clarified the situation by stating, “Our actions were not specific to cryptocurrency but rather reflect the issuers’ failure to comply with Visa’s policies, that we put in place to ensure the safety and integrity of our payment system.”

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