Edge issues Mastercard without KYC

[Marvell1]

The co-founder of the Edge exchange, Paul Puey, has expressed excitement about the release of a debit card that can spend bitcoin and other crypto assets without requiring customers to KYC. Crypto used through Edge Mastercard include: Bitcoin, BCH, LTC and Dash.

“Using Edge Mastercard does not require you to compromise your privacy, as other programs do. There is no name or address associated with your Edge Mastercard, making for completely private transactions when your card is used,” the San Diego-based cryptocurrency payment company noted on its website

Details: https://thecryptobasic.com/2022/06/08/edge-launches-no-kyc-mastercard-to-allow-users-to-spend-btc-eth-bch-doge-across-10m-u-s-merchants/#:~:text=Following%20the%20initiative%2C%20the%20cryptocurrency,)%20and%20Dogecoin%20(DOGE).

[nullama]

I'm actually surprised about the large amount that can be spent without KYC through Mastercard and still be compliant with all the regulations:

Despite the fact that users will not be required to go through complex KYC procedures, Edge noted that the newly launched Mastercard is compliant with various financial regulations, including Anti-Money Laundering (AML) and Counter-Terrorism Financing.

On a daily basis, users will get to spend a maximum of $1,000, making it $30,000 for a month.

It's still a bit thin on the details though. You would have to open an account with that company. What details do they require?, email?, phone number, name, etc...

[Darker45]

It's still a bit thin on the details though. You would have to open an account with that company. What details do they require?, email?, phone number, name, etc...

The article says you only need to give your email address. That is enough for you to get access to the Edge app where you will sign up for the Edge Mastercard. I'm also amazed at how they managed to be AML and CTF compliant when it's just a mere email address that's required.

Anyway, this must still be good news all in all even though the 10 million merchants that are said to be supporting the service will not really be accepting crypto payments but fiat.

[noorman0]

I'm actually surprised about the large amount that can be spent without KYC through Mastercard and still be compliant with all the regulations:

Despite the fact that users will not be required to go through complex KYC procedures, Edge noted that the newly launched Mastercard is compliant with various financial regulations, including Anti-Money Laundering (AML) and Counter-Terrorism Financing.

On a daily basis, users will get to spend a maximum of $1,000, making it $30,000 for a month.

Just like it was nothing when they were still under the power of law. Good at the beginning disappointing at the end, I believe this is the average user's skepticism. Is this another sneaky way of slowly accumulating bitcoins somewhere and when it becomes a lot and then locking it up by changing strict rules for "minimizing illicit activities" reasons?

The government can do anything with the force of law, companies must comply or the license will be revoked.

[nullama]

~snip~
The article says you only need to give your email address. That is enough for you to get access to the Edge app where you will sign up for the Edge Mastercard. I'm also amazed at how they managed to be AML and CTF compliant when it's just a mere email address that's required.

Anyway, this must still be good news all in all even though the 10 million merchants that are said to be supporting the service will not really be accepting crypto payments but fiat.

Well, at a minimum they need to somehow create the card to some name, and have it delivered to some real world address, on top of the email. I'm assuming they must have some checks on the name and address to make sure it's a real person.

Reading a bit more it says it's using Patriot Bank as the issuer of the card:

Edge Mastercard will be issued by Patriot Bank, NA, under license from Mastercard International and powered by fintech company Ionia. Edge says that it has more than 1.7 million accounts across 179 countries on its self-custodial cryptocurrency trading platform.

Here's some information about Patriot's debit cards:

Monitored by Enfact
Enfact Advantages

    “Watch dog” that monitors your debit card activity around the clock.
    Notifies you of any unusual activity or suspicious transactions.
    Temporarily blocks your debit card until you confirm or deny transactions.
    Releases the temporary block once you approve the suspect transactions.
    Blocks your debit card when you confirm fraud transactions.
    Keeps an eye on your card when you travel.  Just report your plans to your local branch and a travel notice will be added to your account to prevent your card from being temporarily blocked for unusual activity.

In order to verify customer transactions, Enfact may contact you by phone using an automated recording service.  The automated call service will let you know that the call is on behalf of Patriot Bank and include your particular name.  You will then be asked to verify the Zip Code for your account. No other account questions will be asked.  If you receive a call requesting information other than your Zip Code, please DO NOT COMPLY and contact your financial institution immediately.

[GreatArkansas]

This is very game-changer for the people. There are still no popular debit card services that can spend Bitcoin these days and for me, it is somehow not ideal, especially in some countries or places.
But these kinds of innovation will make it easier and more popular so people start using and and adoption will increase.

[Ale88]

~snip~
The article says you only need to give your email address. That is enough for you to get access to the Edge app where you will sign up for the Edge Mastercard. I'm also amazed at how they managed to be AML and CTF compliant when it's just a mere email address that's required.

Anyway, this must still be good news all in all even though the 10 million merchants that are said to be supporting the service will not really be accepting crypto payments but fiat.

Well, at a minimum they need to somehow create the card to some name, and have it delivered to some real world address, on top of the email.

I was wondering the same, how are you gonna get the card? And besides the app, is this card physical, virtual, or both? Because if you can add it to Apple Wallet for example it would make sense that they just require an email address.

[nullama]

~snip~
The article says you only need to give your email address. That is enough for you to get access to the Edge app where you will sign up for the Edge Mastercard. I'm also amazed at how they managed to be AML and CTF compliant when it's just a mere email address that's required.

Anyway, this must still be good news all in all even though the 10 million merchants that are said to be supporting the service will not really be accepting crypto payments but fiat.

Well, at a minimum they need to somehow create the card to some name, and have it delivered to some real world address, on top of the email.

I was wondering the same, how are you gonna get the card? And besides the app, is this card physical, virtual, or both? Because if you can add it to Apple Wallet for example it would make sense that they just require an email address.

That could be the case, a virtual card, because they claim the card doesn't have a physical address attached to it:

Since there is no address associated with the card, users can enter any name and address for payment purposes when shopping online.

But it will only work for US terminals:

the card is only available for use at US commercial terminals.

I'm not really sure how this company is making money though:

Aside from its security, the company claims that there are no fees charged on its new Mastercard card. When users sell their BTC for extra funds, the company uses spot exchange rates from third-party sites like Coinmarketcap without margin.

Maybe they get a cut from the merchant fees of mastercard?

[buwaytress]

Debit cards have always been easy to get without KYC, though, no? I mean, I know it's getting harder and harder. Used to be you could just sign up with an email online and get all kinds of debit cards -- it's free money for the issuer as they charge you well high on reloads and fees. Now you do need to provide more info -- billing address proof, name, but I'm pretty sure it's still possible to get gift card type debit cards that don't bear a name.

As nullama points out above too, virtual cards still don't need a name.

So what's the big deal here really? That it can spend Bitcoin? Big deal =p

[Lucius]

Here's some information about Patriot's debit cards:

Monitored by Enfact
In order to verify customer transactions, Enfact may contact you by phone using an automated recording service.  The automated call service will let you know that the call is on behalf of Patriot Bank and include your particular name.  You will then be asked to verify the Zip Code for your account. No other account questions will be asked.  If you receive a call requesting information other than your Zip Code, please DO NOT COMPLY and contact your financial institution immediately.

Well, it's not that we can say that everything is completely anonymous because the bank (or Enfact) that monitors transactions knows your phone number and name (probably last name) and verifies the authenticity of transactions by calling your number. I’m not saying that someone can’t give false information when it comes to name and ZIP code, but I guess that’s punishable under U.S. law.

Allowing someone to spend as much as $30k a month without the authorities having no insight into exactly who it is is a little too naive to believe.

[Husires]

What services will accept this card and what fees or data that they will be collected from the user.

• I don't think that you will maintain your privacy while using a MasterCard card, and this will not last long or in high volumes.
• I don't think PayPal, Google, Apple and other well-known services will accept these cards.
  
  

I'm not really sure how this company is making money though:

There may be additional fees with each purchase or sale, or issuance fees, they will make profits even from selling data so it is not a problem.

[DdmrDdmr]

There’s been a change in the status of Edge's Mastercard project:

<…>
As noted in our announcement, this program is in full compliance with the rules and regulations as set forth by regulatory bodies and our card issuer’s templated card program.
With this said, at this time, we have been asked to take down our content and put on hold the availability of the card program while we work diligently with our card program manager and card issuer to resolve these unanticipated challenges as quickly as we can.
Rest assured that nobody’s funds are at risk. Any users who would like refunds for their topped up cards may contact us
<…>

That was a pretty fast hold/rollback, but the non-KYC explicit announcement as part of the marketing pitch must have quickly caught the attention of people that can drive a nail right through the project …

See: https://edge.app/blog/company-news/official-announcement-edge-card/

[dkbit98]

That was a pretty fast hold/rollback, but the non-KYC explicit announcement as part of the marketing pitch must have quickly caught the attention of people that can drive a nail right through the project …

Lol...That escalated quickly in just few days
They didn't say who exactly asked them to take down their content regarding mastercard program, but that card page is totally missing from their website.
To me this looks more like a serious warning and order from someone, than polite ask from some friendly authority.
It would be much better if they started offering their cards to other countries first, instead of starting with United States.

[JeromeTash]

It's still a bit thin on the details though. You would have to open an account with that company. What details do they require?, email?, phone number, name, etc...

The article says you only need to give your email address. That is enough for you to get access to the Edge app where you will sign up for the Edge Mastercard. I'm also amazed at how they managed to be AML and CTF compliant when it's just a mere email address that's required.

Historically, that's how most popular exchanges that are fully regulated today started, but today they need all KYC details of anyone who registers. The question is how long will they take without going full KYC? 


I was excited about the MasterCard so I downloaded the walled, signed up anddd.......?



I guess the product is not yet ready to use.

[BitMaxz]

I tried to check the site directly to their mastercard page but it seems it's under construction according to their page here

Well, it's not that we can say that everything is completely anonymous because the bank (or Enfact) that monitors transactions knows your phone number and name (probably last name) and verifies the authenticity of transactions by calling your number. I’m not saying that someone can’t give false information when it comes to name and ZIP code, but I guess that’s punishable under U.S. law.

Allowing someone to spend as much as $30k a month without the authorities having no insight into exactly who it is is a little too naive to believe.

Not just that they could also be able to pull the phone information like phone model and IMEI and also I think your current location and use that information to contact the distributor/ product dealer they can easily know who bought the unit.

[AmoreJaz]

I tried to check the site directly to their mastercard page but it seems it's under construction according to their page here

Well, it's not that we can say that everything is completely anonymous because the bank (or Enfact) that monitors transactions knows your phone number and name (probably last name) and verifies the authenticity of transactions by calling your number. I’m not saying that someone can’t give false information when it comes to name and ZIP code, but I guess that’s punishable under U.S. law.

Allowing someone to spend as much as $30k a month without the authorities having no insight into exactly who it is is a little too naive to believe.

Not just that they could also be able to pull the phone information like phone model and IMEI and also I think your current location and use that information to contact the distributor/ product dealer they can easily know who bought the unit.

they are still on the works and i believe, they will attract good number of users for this app. but expect maybe some bugs or issues upon launching. we can't expect everything to be perfect but this will be a good attraction for users to deal with crypto. nowadays, a lot of population own at least one smartphone, so the adoption may not be too hard. if the company is good in marketing, they can easily reach out these younger generations via social media marketing campaigns.

[nullama]

It's still a bit thin on the details though. You would have to open an account with that company. What details do they require?, email?, phone number, name, etc...

The article says you only need to give your email address. That is enough for you to get access to the Edge app where you will sign up for the Edge Mastercard. I'm also amazed at how they managed to be AML and CTF compliant when it's just a mere email address that's required.

Historically, that's how most popular exchanges that are fully regulated today started, but today they need all KYC details of anyone who registers. The question is how long will they take without going full KYC?  


I was excited about the MasterCard so I downloaded the walled, signed up anddd.......?



I guess the product is not yet ready to use.

The product was actually launched, but quickly after they were asked to stop:

we have been asked to take down our content and put on hold the availability of the card program while we work diligently with our card program manager and card issuer to resolve these unanticipated challenges as quickly as we can.

That's why it's not working for you.

[Ale88]

That was a pretty fast hold/rollback, but the non-KYC explicit announcement as part of the marketing pitch must have quickly caught the attention of people that can drive a nail right through the project …

Lol...That escalated quickly in just few days
They didn't say who exactly asked them to take down their content regarding mastercard program, but that card page is totally missing from their website.
To me this looks more like a serious warning and order from someone, than polite ask from some friendly authority.
It would be much better if they started offering their cards to other countries first, instead of starting with United States.

Let's say that it was kind of easy to predict, I mean let's be serious: a card that allows you to spend hundreds of dollars each month without any kind of identity/background check? And to be used only in the United States? Worst country ever to do something like that.

[Lucius]

I mean let's be serious: a card that allows you to spend hundreds of dollars each month without any kind of identity/background check? And to be used only in the United States? Worst country ever to do something like that.

It is not a matter of a few hundred dollars, but the maximum allowed amount was set at as much as $30k per month, which is a significant amount even if it is an annual limit. It is not at all clear to me how one supposedly serious company came up with such a frivolous idea...

[Ale88]

I mean let's be serious: a card that allows you to spend hundreds of dollars each month without any kind of identity/background check? And to be used only in the United States? Worst country ever to do something like that.

It is not a matter of a few hundred dollars, but the maximum allowed amount was set at as much as $30k per month, which is a significant amount even if it is an annual limit. It is not at all clear to me how one supposedly serious company came up with such a frivolous idea...

You're right, I made a mistake, I was thinking thousands but I wrote hundreds