UK Regulator Allows Wirecard to Resume Activity After Filing For Bankruptcy
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Debit card issuer Wirecard will resume operations today, the Financial Conduct Authority (FCA) reported today.

On June 26, the FCA suspended the license issued to Wirecard's subsidiary, Wirecard Card Solutions, for payment processing and card issuance. As a result, customers of service partners like Payoneer and Anna Money were unable to use their cards while their funds were frozen.

However, the FCA announced yesterday the company "had solved the problems" and that its customers will be able to use the cards "now or very shortly."

Anna Money promised its clients it would "unfreeze" their accounts starting on June 30 inclusive. The service has temporarily limited the number of outgoing transfers.

Payoneer said the service would resume operations before July 1. Payoneer will transfer incoming funds not to a card, but to a virtual account. Customers will be able to withdraw the money to a local bank account. The company has said it is looking for a new card issuer.

Wirecard filed for bankruptcy on June 25 after auditor Ernst & Young (EY) failed to confirm the presence of €1.9B in the company's accounts. Wirecard's market cap dropped by more than 90% after the auditor refused to sign the 2019 report. As a result, the company's CEO Markus Braun resigned and was arrested on June 23.

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