Thousands of users around the world have seen their cards pre-loaded with cryptocurrencies - mostly bitcoins - have been blocked by order of Visa. Suppliers such as Bitwala, Cryptopay, Wirex and TenX have been notified by the card issuer that the service is suspended from this Friday, January 5 indefinitely. Visa has not officially explained the reasons for its decision.
Cards including BitPay, Cryptopay and Bitwala also announced that they are working to return funds to users. These services allow customers to spend cryptocurrencies - predominantly Bitcoin - in traditional establishments and to make electronic transactions through a debit card issued by one of the main providers: Visa and MasterCard.
Bitcoins are not lost
Many of these Bitcoin payment cards are operated with the Visa WaveCrest provider, a company based in Gibraltar. As reported by The Telegraph, WaveCrest e-mailed cardholders informing them that Visa had ordered that all prepaid cards be closed.
"Following an announcement from our Visa Europe card issuer, the Bitwala cards are removed from the transaction as of today. Our team is holding an emergency meeting to solve the problem taking into account the interest of the cardholders and will make an update soon. Several suppliers of Bitcoin debit cards suspend the service under Visa orders, "Bitwala said in his social networks this Friday.
In practical terms this does not mean that the users of these cards lose their cryptocurrencies, only that they will not be able to use their cards. Providers have reassured users that their funds are safe and that they will find a way to return them.