A lot of people like to use a Bitcoin debit card. Even though it is not the “pure” way to spend Bitcoin, it is a good alternative. Tens of thousands of merchants around the world accept card payments, both online and in-store. Bitwala is one of the many Bitcoin companies issuing cryptocurrency debit cards. Unfortunately, it appears they have introduced new limits, which most people are not too happy about.
Cryptocurrency debit card providers have to adhere to strict regulations. This is part of the reason why users need to verify their identity to lift card limits. After all, companies such as Bitwala want to prevent money laundering and terrorist financing. Unfortunately, these new limitations do not bode well for anyone using Bitwala’s debit card in the European Union. Unverified card holders are hit with new limits which make using the card nearly impossible.
Bitwala Introduces Lower Limits for Unverified Users
More specifically, unverified card holders can’t have a balance of over 250 EUR on their card. That is only normal, as these cards already have low spending limits. However, it will no longer be possible to withdraw over 100 EUR per transaction. Nor can users complete card transactions for more than 100 EUR either, unless they verify their identity. This latter part will not sit well with a lot of Bitwala customers.
These new changes are the direct result of a new EU regulation amendment proposal. Apparently, the EU wants to make changes to the 4th Money Laundering Directive moving forward. Bitwala is preparing for when these regulations are approved, as that appears to be merely a matter of time. It is evident anonymous payment solutions are on the radar of government officials right now. Companies need to be proactive in this regard, especially if they are linked to Bitcoin and cryptocurrency.
The bigger question is whether or not further limits will be imposed to verified users. It is certainly possible users may need to submit additional verification in the future. The European Union is not a fan of any anonymous payment tools. Moreover, they aim to further regulate prepaid debit card service providers. Other debit card service providers may be affected by this proposal in the future.