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How Does June’s Wirecard Insolvency Affect Crypto Debit Card Users?

This week’s shock Wirecard insolvency is causing a major headache for thousands of crypto debit card users. For the most part, though, if you use a Wirecard issued crypto debit card, your funds are safe.

Might you be affected by this week’s sudden Wirecard insolvency? Here, we’ll look at how to find out, as well as what to do if you are affected.

The Wirecard Insolvency Fiasco in Brief

Tuesday, June 23rd saw Markus Braun, German Wirecard CEO arrested in Munich. The next 24-hours then saw Wirecard shares plummet in value, as details of $2.15 billion in missing funds began to circulate online.

As a result of on-going investigations, most Wirecard issued debit cards are now frozen, with users unable to use these online, in-store, or at ATMs. Neither is it clear when (if ever) some users will once again be able to access their funds.

How Do Wirecard Insolvency Proceedings Affect Cryptocurrency Users?

Why this year’s sudden Wirecard insolvency is a problem for cryptocurrency users is simple. If you are in the UK or Europe and you use a crypto debit card to transact Bitcoin or other digital assets coins as cash, there is a strong likelihood that your card was issued by Wirecard.

At present, crypto debit cards issued by Wirecard include cards from:

  • Crypto.com

  • TenX

  • Cryptopay

If you use one of the above cards, you will no longer be able to withdraw funds you deposit to accounts. Neither will you be able to use cards online or in-store to make purchases. Don’t worry just yet, though. Likely, any funds on cards you can’t use are safe.

When Will I Be Able to Access My Funds?

How your crypto debit card provider will help you retrieve access to lost crypto funds will depend on their terms and conditions. However, in the case of Crypto.com, all users of Crypto.com debit cards will receive 100% of lost funds in the form of credit paid to their existing cryptocurrency wallets in the next 48-hours.

If you have doubts concerning how to retrieve your own funds, make sure to contact your specific cards’ customer support helpline.

What Alternatives to Wirecard are Left in 2020?

Do you regularly use crypto debit cards to transact Bitcoin or other digital assets? If so, don’t worry. There are still several crypto debit cards available that do not have exposure to the current Wirecard insolvency scandal.

At present, Skrill, Neteller, and Revolut, all allow users top-up card balances with top market cap cryptocurrencies like Bitcoin. In most cases, these cards will also be the best option for UK and EU cryptocurrency users.

Top U.S. Crypto Debit Cards

One problem with crypto debit cards rests with the fact that many cards are only available in specific areas. Many cards available in the EU are not, for instance, also available in North America. However, there are homegrown U.S. crypto debit cards that offer similar, if not greater benefits to users.

At present, Coinbase, BlockCard, and Bitpay all make available crypto debit cards to U.S. crypto users. In the case of BlockCard by Ternio, it is even possible to earn up to 6.38% in crypto rewards, every time you use cards for direct store purchases.

It is also worth remembering that thousands of businesses in 2020 now allow customers to pay with cryptocurrency directly. As a bonus, every time you do, you help bring mainstream cryptocurrency acceptance one step closer.

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