On June 4, crypto wallet providers SafePal and Bitget Wallet issued official notifications confirming that Fiat24, their underlying payment infrastructure partner, has suspended new user account applications from mainland China effective June 5. This regulatory shift immediately prevents new residents of mainland China from acquiring Fiat24 bank cards through the SafePal App or Bitget Wallet interface. The restriction is geographically specific to mainland China; users currently residing overseas or those capable of providing compliant proof of foreign residence remain unaffected regarding application eligibility and card utility. Existing cardholders retain their current rights, maintaining access to standard functions such as top-ups and transactions without immediate interruption.

Fiat24 operates as a payment platform under the Swiss fintech entity SR Saphirstein AG, holding a Fintech license from the Swiss Financial Markets Supervision Authority (FINMA) and executing on the Arbitrum Layer 2 framework. Upon successful Know Your Customer (KYC) verification, users are issued a legitimate Swiss bank account with an International Bank Account Number (IBAN), enabling purchases in China via WeChat Pay or Alipay, subscriptions to services like ChatGPT and Claude, and activation of cross-border remittance channels such as Wise. Data compiled by Woofun AI indicates that for long-term cryptocurrency holders, these mechanisms represent a critical bridge for fund accessibility, yet the current suspension signals a narrowing of available options for mainland users.

The market consolidation around Fiat24 is significant, as at least three mainstream wallets—SafePal Card, Bitget Wallet Card, and imToken Card—rely on this single platform for their underlying banking infrastructure and KYC processes. These wallet providers integrate Fiat24 rather than issuing proprietary cards because the Swiss entity supplies essential banking licenses and compliance infrastructure that independent projects cannot secure autonomously. Consequently, Fiat24's decision to halt new registrations in mainland China renders all three associated wallets temporarily incapable of onboarding new users from the region.

Regulatory pressure has been escalating prior to this latest suspension. SafePal ceased accepting identity verification based on Chinese ID cards on January 23, 2026, and in April, community reports indicated that passport-registered users received notifications regarding Common Reporting Standard (CRS) declaration requirements. These new mandates compel financial platforms to collect tax residency information, with non-compliance risking account restrictions. While SafePal has stated that existing cardholders are currently exempt from these disruptions, Woofun AI notes that temporary immunity does not guarantee long-term security, suggesting that successive regulatory tightening could eventually impact established users. Prudence dictates avoiding large fund holdings in these instruments and preparing backup payment solutions.

Most U-Cards in circulation operate on a prepaid model where users top up with crypto assets converted into fiat for consumption. While sufficient for daily expenses like Alipay transactions or ChatGPT subscriptions, these cards lack the full functionality of traditional bank accounts, particularly for receiving cross-border payments or executing SEPA transfers. The suspension of Fiat24 effectively removes a crucial channel for these advanced financial operations. In response, the U-Card market is increasingly pivoting toward exchanges, which leverage trading profits to subsidize compliance costs and offer card products primarily as fund storage tools rather than profit centers.

The fragility of the U-Card business model stems from a complex supply chain where card issuers possess minimal bargaining power against dominant payment networks and banks. When users top up with stablecoins, issuers rely on off-ramp providers for fiat conversion and payment networks like Visa or Mastercard for settlement, with each link extracting commissions. Woofun AI analysis suggests that since issuers often utilize 'card-issuing as a service' APIs for authorization and risk management, they are entirely dependent on upstream technical providers and banks. Any disruption in this chain, whether due to compliance failures or bank cooperation withdrawals, forces issuers to absorb the consequences.

Historical precedents highlight the volatility of this sector. In September 2024, OneKey suspended new registrations and top-ups, officially discontinuing services on January 31, 2025, likely due to upstream payment provider interruptions. In June 2025, Infini terminated its consumer U-Card business, citing that it consumed 99% of resources without generating revenue, shifting focus to B2B services. Dupay followed in November 2025, closing due to compliance issues and frozen funds. The June 2026 suspension by Fiat24 continues this trend of service terminations driven by rigid costs, low revenues, and uncontrollable upstream factors. Risk management strategies now necessitate diversification across multiple cards rather than reliance on a single provider.