Last week, Ramp It sent a message to crypto companies using its corporate card services that it is significantly reducing spending limits and imposing new requirements. Some users are temporarily blocked from Total Spending.
“Given the unprecedented recent events in the cryptocurrency, blockchain, NFT and DeFi ecosystem, we are conducting a review of all businesses operating in this space, including you, to see if they can reverse or improve any of the changes listed above.” Note said.
While Ramp backs off somewhat on the changes, the move provides a window into how corporate credit card companies may be stress-tested in the current environment. Ramp’s biggest competitor, Brax, said there have been no changes to spending limits for crypto users.
In the case of a ramp, companies are asked to upload current balance sheets, including versions reflecting at least the last 12 months. Most recently completed income statement; and a list of any cryptocurrency, blockchain, NFT and/or DeFi exchanges with which the company has held an account in the past 12 months. “We sincerely apologize for the potential disruption to your operations, and realize this may have implications for your business,” the email said.
Less than 24 hours after that move, Ramp CEO and co-founder Eric Gleeman And other executives sent emails to consumers Saturday providing more context on the changes. The company apologized for the confusion, saying the initial memo “may have caused unnecessary anxiety.”