The quick read
Using cryptocurrencies like bitcoin for “real-life” purchases isn’t the easiest thing to do. And late last week, it became a little more difficult when Visa Europe ended its relationship with WaveCrest, which issued Visa debit cards for Bitwala, Cryptopay, Wirex and TenX. The debit cards were funded by cryptocurrencies that had been converted into fiat currency. (CNBC)
The key detail
In a statement, Visa Europe made it clear that its problem was with WaveCrest, not cryptocurrencies in general.
We can confirm that WaveCrest’s Visa membership is being terminated due to continued non-compliance with our operating rules. All of WaveCrest’s Visa card programmes will be closed as a result.
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. (TNW)
The bottom line
Anonymity and lack of regulation were part of the initial appeal of cryptocurrencies. That doesn’t work in the financial services industry where compliance is king. You either keep up or get shut down.
