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.
I had a couple of those cards, and the KYC procedure was quite thorough in both cases. I'm afraid it's more of an AML thing, like Wavecrest refusing to provide the data to the "powers that be" without international court orders or similar compelling reasons. Unlike VISA, that chickens out at the mere lifting of an international eyebrow.
Yes, most probably AML. I updated my previous post with a reference to banking secret that might apply here.
Gibraltar has many similarities to Andorra. In fact it is currently a way better "tax-heaven" than Andorra. Barclays has some nice setups there for... stuff. Or so I have heard.