An employee displays the Wirecard AG online payment smartphone app at the company’s exhibition booth at the Noah Technology Conference in Berlin, Germany, Thursday, June 13, 2019.
Krisztian Bocsi | Bloomberg via Getty Images
Wirecard has received permission to conduct regulated activities in the UK again following a decision by regulators to lift restrictions on the company.
The Financial Conduct Authority (FCA) said on Tuesday that it had given Wirecard UK subsidiary Wirecard Card Solutions written consent to resume electronic money and payment services, although There are still some restrictions. The watchdog forced the company to halt operations on Friday after its parent company filed for bankruptcy in Germany.
The move means that thousands of Britons who had been excluded from financial technology services will soon be able to access their cash again. The closure affected several new fintech companies, including Curve U accounts, Pockit, Anna and Morses Club. However, Curve managed to get around the restrictions by changing the payment processor over the weekend.
“There may be a delay before all card programs are fully operational, so some customers may be unable to transact immediately, but we anticipate that this will not last more than 24 hours,” Wirecard Card Solutions said in a statement. on Tuesday. “We apologize for the inconvenience to our valued customers caused by the temporary suspension.”
Despite the relaxation of the FCA’s restrictions, experts have said the problem could have lasting damage to people’s confidence in financial technology companies. Apps like Curve and Anna rely on e-money licenses to handle payments, but they don’t have their own bank licenses to hold customer funds. Instead, the money is transferred to an external bank.
Munich-based Wirecard has said it will continue to operate despite opening insolvency proceedings. The company collapsed into insolvency last week after revealing a € 1.9 billion ($ 2.1 billion) hole in its balance sheet. Former CEO Markus Braun is currently on bail after being arrested in Munich.
The company has said it is examining whether subsidiaries should also file for insolvency. Wirecard’s North America unit, which bought from Citigroup in 2016, said Monday night that it was looking for a buyer.
Meanwhile, in Singapore, the central bank has said that Wirecard is evaluating its ability to continue providing services in the country after the insolvency declaration of its parent company. Wirecard’s Singapore unit was at the center of an investigation into accounting irregularities last year. The Singapore Monetary Authority is working with the police to analyze Wirecard’s local operations.
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