Wirecard’s subsidiary that is responsible for issuing debit cards has been suspended as the company can no longer access customer funds.
Wirecard’s subsidiary responsible for issuing debit cards, Wirecard Card Solutions Ltd., has been suspended by the United Kingdom’s Financial Conduct Authority, or FCA.
According to a statement issued on June 26 by the regulator, Wirecard’s subsidiary is required to not dispose of any of its funds, stop conducting any of its regulated activity, and it must communicate on its website and to its customers that it is no longer permitted to conduct regulated activity.
As of press time, however, such statements are not present on any of Wirecard’s websites, including the subsidiary’s dedicated domain.
The FCA explained that following the news of the 1.9 billion euros shortfall in Wirecard, it began working with the card issuing subsidiary to ensure that customer funds are protected.