Last week, Driveway sent a message to crypto companies using its corporate card services saying it was significantly lowering spending limits and imposing new requirements. Some users were temporarily unable to spend at all.
“In light of recent unprecedented events in the cryptocurrency, blockchain, NFT, and DeFi ecosystem, we are conducting an assessment of all companies operating in this space, including yours, to determine whether we are one of undo or change the changes listed above,” a memo said.
While Ramp balked at the changes somewhat, his move provides a window into how corporate credit card companies can be stress tested in the current environment. Brex, Ramp’s biggest competitor, said no changes have been made to crypto users’ spending limits.
In the case of Disaster, companies were asked to upload their current balance sheet, including versions that reflect at least the previous 12 months; the most recently completed income statement; and a list of all cryptocurrency, blockchain, NFT and/or DeFi exchanges the company has had an account with in the past 12 months. “We sincerely regret the potential disruption to your operations and realize that this may impact your business,” the email read.
Less than 24 hours after that move, Ramp CEO and co-founder Eric Glyman and other executives sent emails to users on Saturday with more context about the changes. The company wrote that the initial note “may have caused unnecessary concern” and apologized for the confusion.