Final week, Ramp despatched a message to crypto firms utilizing its company card providers saying that it’s considerably reducing spending limits and mandating new necessities. Some customers had been briefly suspended from spending altogether.
“In gentle of current unprecedented occasions within the cryptocurrency, blockchain, NFT and DeFi ecosystem, we’re conducting a overview of all companies working on this area, together with yours, to find out whether or not we reverse or modify any of the modifications listed above,” one memo stated.
Whereas Ramp considerably backtracked on the modifications, its transfer provides a window into how company bank card firms may very well be stress-tested within the present surroundings. Brex, Ramp’s greatest competitor, stated that there have been no modifications to crypto customers’ spending limits.
In Ramp’s case, firms had been requested to add their present stability sheet, together with variations reflecting no less than the earlier 12 months; its most lately accomplished revenue assertion; and a listing of any cryptocurrency, blockchain, NFT, and/or DeFi change the corporate has held an account with within the earlier 12 months. “We sincerely remorse the potential disruption to your operations, and understand this will likely have implications for your corporation,” the e-mail stated.
Lower than 24 hours after that transfer, Ramp CEO and co-founder Eric Glyman and different executives despatched emails to customers on Saturday offering additional context on the modifications. The corporate wrote that the preliminary word “might have induced pointless concern” and apologized for the confusion.