This explanation is not too convincing. If there was risk of funds disappearing, Wavecrest wouldn't have been appointed in the first place, I suppose. I would really like to know which specific rules were disattended.
Wavecrest has its official HQ in Gibraltar.... so most probably it's a KYC/AML thing, which makes much more sense when you also add cryptocurrencies to the equation. Also take into account the EU regulation regarding prepaid/debit/gift cards of over 100.
EU is fighting hard against old time tax-heavens. Andorra was forced to stop its banking secret effective 1 JAN 2018.