Prepaid Visa card users will no longer be able to use the cards for cryptocurrency transaction after Visa suspended the service starting January 5. This is another embarrassing move by a major financial institution.
With the cards, users could fund their accounts using BTC or ETH. They can withdraw it in regular currencies such as pounds or Euros.
Following an announcement from our card issuer on behalf of Visa Europe, Bitwala cards are taken out of operation starting today. Our team is holding an emergency meeting to resolve the issue with the card holders best interest in mind and will make an update shortly.
— Bitwala (@bitwala) January 5, 2018
Bitwala also said in a blog post that the move affected physical and virtual cards and it will offer fee refunds for cards ordered on or after December 1.
The company said they are working to restore the card service with alternative card issuers in the “short term future.”
“The Bitwala Debit Card remains one of the pillars of our service. And we will make it again part of our product offering,” said the announcement. “Ever since we announced our vision, we have been approached by a number of alternative card issuers and we are already in discussions to bring a solution in the short term future.”
The cards are mainly operated through Wavecrest, a Gibraltar-based company. The firm has written, saying that Visa ordered them to close all pre-paid cards.
Unfortunately, our card issuer instructed us to cease all Cryptopay prepaid cards starting January 5th, 2018. All funds stored on cards are safe and will be returned to your Cryptopay accounts ASAP. Sorry for all the inconvenience caused, we’re working on the solution!
— Cryptopay (@cryptopay) January 5, 2018