United Kingdom fintech firms forced to suspend services after Wirecard collapse

In a statement An Post said this means the cards cannot be used in Ireland or aboard

With the Munich-based parent firm entering insolvency proceedings following a multi-year fraud that resulted in a €1.9 billion hole in its balance sheet, the FCA has imposed restrictions on Wirecard UK to freeze all assets and funds until further notice.

"We can not lift the restrictions without reassuring ourselves that the firm has been able to satisfy all our concerns for example that all clients' money is safe".

The watchdog's actions caught the United Kingdom fintech community off-guard, with many firms who relied on Wirecard for operational support knocked sideways.

Mobile business account Anna Money, which was also hit by the fallout, has vowed to replace user's frozen cash from its own pockets, reassuring customers that their accounts remain safe.

This has a direct impact on Crypto.com as they use Wirecard's services, which means all card transactions and top-ups are to stop immediately.

"The main point is to reassure them that their card details and their funds are still secure", Griffith said, promising a further update later on Friday.

"This action is not related to Curve - but Curve now depends on Wirecard for operation of the Curve card", Curve told customers on Friday. "We are recommending that for the period of this short suspension Curve customers carry an alternative payment method", it added.

In a statement on its Website, the firm says: "We began our transition away from Wirecard a few months back and we are moving furiously down the path to complete this migration".

In a statement, An Post said this means the cards can not be used in Ireland or aboard.

Pockit said it was working with the FCA to get the issue solved as quickly as possible. We apologize for any inconvenience this may cause and we'll update you with more information as soon as we have it.

"WDCS is working hard to have the steps in place which will enable the suspension to be lifted so business can resume as usual".

The news comes just days after Markus Braun, the ousted Chief Executive of th global payment processing firm, was arrested on charges of corruption, fraud and executive mismanagement.

On its website the FCA said customers should contact Wirecard or their card provider directly and warned that Wirecard was not covered by the UK's Financial Services Compensation Scheme (FSCS) - which does not compensate customers of electronic money or payment services.

The Munich based firm employs nearly 6,000 staff in 26 countries.



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