Confused on the True Purpose of Non-KYC Crypto Debit/Prepaid cards

[dim_mak5]

Hi,

Non- KYC means the service provider does not know who you are and does not know where you live right? So lets say for example you deposit a $million USDT onto your non-kyc crypto virtual debit card, because it is non-kyc can the service provider still freeze your USDT?

The whole purpose of non-kyc is is stop the service provider issuer freezing your crypto right? For example I could be the most wanted terrorist in the world but as long I have my non-kyc crypto card I can still spend it to survive because the service provider issuer do not know that I am a terrorist because of non-kyc so my crypto wont be frozen right?

Or can non-kyc crypto cards still be frozen and how do non-kyc crypto debit cards work, are they connected to a custodial or non-custodial right?

Otherwise how does a non-kyc crypto card makes sense with a custodial wallet and what triggers the service provider issuer to freeze your card or crypto if they don't know who you are to begin with

Someone please make sense of all this for me.

Lastly with president Trump signing off stable coins as legal then which crypto non-kyc cards are officially regulated by the SEC?

[goldkingcoiner]

Hi,

Non- KYC means the service provider does not know who you are and does not know where you live right? So lets say for example you deposit a $million USDT onto your non-kyc crypto virtual debit card, because it is non-kyc can the service provider still freeze your USDT?

The whole purpose of non-kyc is is stop the service provider issuer freezing your crypto right? For example I could be the most wanted terrorist in the world but as long I have my non-kyc crypto card I can still spend it to survive because the service provider issuer do not know that I am a terrorist because of non-kyc so my crypto wont be frozen right?

Or can non-kyc crypto cards still be frozen and how do non-kyc crypto debit cards work, are they connected to a custodial or non-custodial right?

Otherwise how does a non-kyc crypto card makes sense with a custodial wallet and what triggers the service provider issuer to freeze your card or crypto if they don't know who you are to begin with

Someone please make sense of all this for me.

Lastly with president Trump signing off stable coins as legal then which crypto non-kyc cards are officially regulated by the SEC?

Read the terms and conditions. You will see that you are giving them the option to subject you to KYC and freeze your funds.

You would be quite gullible if you think Non-KYC means you are given the right to be truly anonymous or your funds can never be frozen. It just means you do not have to do KYC pre-emptively.

The service provider holds your funds (and controls the private keys),  so they can freeze your funds for any reason at any time. And when I say ANY reason I mean ANY. That is what custodial means. And non-KYC custodial services still use on-chain surveillance tools like Chainalysis for suspicious transactions. So if they have reason to believe your funds should be frozen, they will not unfreeze them until you provide them with KYC, AML and further documents.

[promise444c5]

Otherwise how does a non-kyc crypto card makes sense with a custodial wallet and what triggers the service provider issuer to freeze your card or crypto if they don't know who you are to begin with

Yeah ! They don't  know who you are but so far you're  using their service they own your coin and  can freeze it at anytime..
This makes them custodial over your funds  as well so far they hold they  for you  and it's even much more easier to scam you if it's  a  fake provider or deliberate actions because you have nothing  to show  for , nothing tied you your account other than whatever they offer you..

Lastly, their service maybe regulated and if they notice any suspicious activity  your account could be freeze  anyways and you could have a low chance of recovery since you don't  want to reveal your identity in the first place..

[Amphenomenon]

Otherwise how does a non-kyc crypto card makes sense with a custodial wallet and what triggers the service provider issuer to freeze your card or crypto if they don't know who you are to begin with

Yeah ! They don't  know who you are but so far you're  using their service they own your coin and  can freeze it at anytime..
This makes them custodial over your funds  as well so far they hold they  for you  and it's even much more easier to scam you if it's  a  fake provider or deliberate actions because you have nothing  to show  for , nothing tied you your account other than whatever they offer you..

They can also be decentralised, is not all that are like this.

Lastly, their service maybe regulated and if they notice any suspicious activity  your account could be freeze  anyways and you could have a low chance of recovery since you don't  want to reveal your identity in the first place..

All these are stated on their TOS. Although some may state they don't keep any logs of users or state the only time your data will be shared would be when higher authority requests for it.

The TOS gives better clarity on every services offering on how they operate and thus includes if such service is Custodial or non-custodial.

[dim_mak5]

Hi,

Non- KYC means the service provider does not know who you are and does not know where you live right? So lets say for example you deposit a $million USDT onto your non-kyc crypto virtual debit card, because it is non-kyc can the service provider still freeze your USDT?

The whole purpose of non-kyc is is stop the service provider issuer freezing your crypto right? For example I could be the most wanted terrorist in the world but as long I have my non-kyc crypto card I can still spend it to survive because the service provider issuer do not know that I am a terrorist because of non-kyc so my crypto wont be frozen right?

Or can non-kyc crypto cards still be frozen and how do non-kyc crypto debit cards work, are they connected to a custodial or non-custodial right?

Otherwise how does a non-kyc crypto card makes sense with a custodial wallet and what triggers the service provider issuer to freeze your card or crypto if they don't know who you are to begin with

Someone please make sense of all this for me.

Lastly with president Trump signing off stable coins as legal then which crypto non-kyc cards are officially regulated by the SEC?

Read the terms and conditions. You will see that you are giving them the option to subject you to KYC and freeze your funds.

You would be quite gullible if you think Non-KYC means you are given the right to be truly anonymous or your funds can never be frozen. It just means you do not have to do KYC pre-emptively.

The service provider holds your funds (and controls the private keys),  so they can freeze your funds for any reason at any time. And when I say ANY reason I mean ANY. That is what custodial means. And non-KYC custodial services still use on-chain surveillance tools like Chainalysis for suspicious transactions. So if they have reason to believe your funds should be frozen, they will not unfreeze them until you provide them with KYC, AML and further documents.

Okay you know which non-kyc crypto debit cards whether virtual or physical cards are linked to your own non-custodial wallet? And can your crypto still be frozen in your own non-custodial wallet?

To clarify the funds on a crypto debit card is separate from the funds in your linked non-custodial wallet? I mean as in you have to manually top up your crypto debit card from your own non-custodial wallet or the crypto debit card automatically spends from your non-custodial wallet and I shall I assume the manual top up method can be frozen because tops up leaves the safe custody of your non-custodial wallet?

Sorry for a lot of questions asked as I try to make sense of all this as I cannot understand that if crypto non-kyc debit cards are a gimmick then why people use them over a normal bank account debit card that offers more consumer protections and no fees compared to a non-kyc crypto debit where there are more expensive fees and if the linked non-custodial wallet is linked to your crypto debit card then you also have to pay gas blockchain network fees too

Otherwise how does a non-kyc crypto card makes sense with a custodial wallet and what triggers the service provider issuer to freeze your card or crypto if they don't know who you are to begin with

Yeah ! They don't  know who you are but so far you're  using their service they own your coin and  can freeze it at anytime..
This makes them custodial over your funds  as well so far they hold they  for you  and it's even much more easier to scam you if it's  a  fake provider or deliberate actions because you have nothing  to show  for , nothing tied you your account other than whatever they offer you..

Lastly, their service maybe regulated and if they notice any suspicious activity  your account could be freeze  anyways and you could have a low chance of recovery since you don't  want to reveal your identity in the first place..

Only kyc crypto cards are regulated? Regulations says kyc is mandatory right? So that means non-kyc crypto debit cards are all scams because they are non-regulated? You know which crypto debit cards are officially regulated from the Trump's administration?

Otherwise how does a non-kyc crypto card makes sense with a custodial wallet and what triggers the service provider issuer to freeze your card or crypto if they don't know who you are to begin with

Yeah ! They don't  know who you are but so far you're  using their service they own your coin and  can freeze it at anytime..
This makes them custodial over your funds  as well so far they hold they  for you  and it's even much more easier to scam you if it's  a  fake provider or deliberate actions because you have nothing  to show  for , nothing tied you your account other than whatever they offer you..

They can also be decentralised, is not all that are like this.

Lastly, their service maybe regulated and if they notice any suspicious activity  your account could be freeze  anyways and you could have a low chance of recovery since you don't  want to reveal your identity in the first place..

All these are stated on their TOS. Although some may state they don't keep any logs of users or state the only time your data will be shared would be when higher authority requests for it.

The TOS gives better clarity on every services offering on how they operate and thus includes if such service is Custodial or non-custodial.

Okay can you list which crypto debit cards use non-custodial wallets and which one would you choose?

[Amphenomenon]

Okay can you list which crypto debit cards use non-custodial wallets and which one would you choose?

Here is a thread that maybe helpful because non-custodial wallets like Metamask also offer such services, this part of thread contain lists of non-custodial wallets offering debit cards services https://bitcointalk.org/index.php?topic=5473572.msg65211562#msg65211562

[dim_mak5]

Okay can you list which crypto debit cards use non-custodial wallets and which one would you choose?

Here is a thread that maybe helpful because non-custodial wallets like Metamask also offer such services, this part of thread contain lists of non-custodial wallets offering debit cards services https://bitcointalk.org/index.php?topic=5473572.msg65211562#msg65211562

Hi thanks for the link.

Yes I see:

- Gnosis card
- Metamask card: https://card.metamask.io/
- Holyheld Card: https://holyheld.com
- Utorg card: https://www.utorgcard.com/
- Xportal card: https://xportal.com/
- Offramp card: https://www.offramp.xyz/
- Cypher card: https://cypherhq.io/
- Fit24 card: https://fiat24.com/
- Thorwallet card: https://www.thorwallet.org/cards
- Onboard card: https://www.onboard.xyz/
- Coca card: https://www.coca.xyz/cards

From the above do you know which ones uses the Ethereum blockchains or Eth Layer 2's please? Also which ones are available for UK customers and I like to know which cards have the cheapest fees and do not charge FX fees when using the card abroad on holidays.

Or which cards are known to freeze non-custodial wallets connected to them?

I did apply to Coca and Gnosis but they both ask for KYC documents, why If they are claiming the funding the cards are through non-custodial wallets then what is the point of them asking for KYC ID

[happybitcoinph]

I did apply to Coca and Gnosis but they both ask for KYC documents, why If they are claiming the funding the cards are through non-custodial wallets then what is the point of them asking for KYC ID

It's because your supposed non-custodial card will be used on the custodial service or centralized platforms. For example, the card can be used for online shopping. How will the transaction be secured at both ends if one is anonymous? If there's buyer protection, there's also seller protection, especially in online transactions.

[Amphenomenon]

Okay can you list which crypto debit cards use non-custodial wallets and which one would you choose?

Here is a thread that maybe helpful because non-custodial wallets like Metamask also offer such services, this part of thread contain lists of non-custodial wallets offering debit cards services https://bitcointalk.org/index.php?topic=5473572.msg65211562#msg65211562

From the above do you know which ones uses the Ethereum blockchains or Eth Layer 2's please? Also which ones are available for UK customers and I like to know which cards have the cheapest fees and do not charge FX fees when using the card abroad on holidays.

Or which cards are known to freeze non-custodial wallets connected to them?

I did apply to Coca and Gnosis but they both ask for KYC documents, why If they are claiming the funding the cards are through non-custodial wallets then what is the point of them asking for KYC ID

I haven't used a crypto debit card before but if you do ask this question on that thread then definitely you are going to get a more accurate response there. Just quote this on that thread and someone will give a better response, after all the thread is still active.

[Lucius]

I don't know why someone would look for virtual crypto cards (is that what we're talking about here?) that would be linked to a crypto wallet? Virtual cards (Visa/Mastercard) that can be bought for cryptocurrencies and paid with online or added to a mobile wallet and paid with at POS devices are much more logical to me.

Even such cards have limitations, and if they cannot be activated with VPN/Tor, it is difficult to be anonymous with them, especially if you pay through a POS device. Be that as it may, if you're trying to spend cryptocurrencies that are in any way connected to something illegal, sooner or later someone will knock on your door, especially if it's a significant amounts.

[dim_mak5]

I don't know why someone would look for virtual crypto cards (is that what we're talking about here?) that would be linked to a crypto wallet? Virtual cards (Visa/Mastercard) that can be bought for cryptocurrencies and paid with online or added to a mobile wallet and paid with at POS devices are much more logical to me.

Even such cards have limitations, and if they cannot be activated with VPN/Tor, it is difficult to be anonymous with them, especially if you pay through a POS device. Be that as it may, if you're trying to spend cryptocurrencies that are in any way connected to something illegal, sooner or later someone will knock on your door, especially if it's a significant amounts.

AML means anti money laundering and money laundering means turning profits from illegal sales such for example class a drugs sales into clean legitimate income. Laundering dirty money into clean money that can be spent on mansions and Lamborghinis and such without arising suspicion.

For someone who is depositing less than $500 worth of stablecoins into a crypto debit card I cannot understand why providers ask for KYC-AML for such tiny amounts that is laughable to big time drug lords and rich criminals Which rich criminal is going to spend his time and resources going to launder $500 or even $5000 or heck even just $50000. The $50000 doesn't even buy you a house nowadays unless were still living in 1980s. $50000 is lower than the average annual wage in the USA.

This has nothing to do with money laundering, its all about controlling your money.

Rich criminals and rich people do not use normal bank accounts and normal debit cards like we do. They use private banking that respect privacy laws that do not invade your privacy by asking private docs for AML KYC. Is privacy becoming a luxury now for the rich only not for the poor?

[Lucius]

For someone who is depositing less than $500 worth of stablecoins into a crypto debit card I cannot understand why providers ask for KYC-AML for such tiny amounts that is laughable to big time drug lords and rich criminals Which rich criminal is going to spend his time and resources going to launder $500 or even $5000 or heck even just $50000. The $50000 doesn't even buy you a house nowadays unless were still living in 1980s. $50000 is lower than the average annual wage in the USA.
~snip~

Who says everyone requires KYC? There are many options for such cards (without KYC) and with a very high balance on the card. I don't know if criminals will spend their time to launder money in this way - but in some parts of the world, $50 000 is a real small fortune with which you can buy a house, a car and still have money left over.

What can 1 Bitcoin buy in your country?

[Ultegra134]

Why do I have a hard time believing that there's such a thing as KYC-free cryptocurrency debit cards? As @goldkingcoiner already mentioned, depending on the terms and conditions, you may be subject to KYC and your funds frozen at any time. If you consider it, it's not quite sensible to expect to be completely anonymous when handling a card.

I know that there are a few services, just like it was mentioned earlier, that offer it, but there's no guarantee they're truly anonymous.

[Lucius]

@Ultegra134, I don't think this is about anonymity in the literal sense, but about being able to buy such a card without anyone asking you for your personal information, ID card, or anything similar. Such services exist and I can confirm that they work, whether it is about paying online or using such cards in mobile wallets and paying at POS devices.

What such services generally do not allow is to use VPN/Tor when ordering a card - but if you are going to pay offline, then there is no point in hiding your identity, considering that every cash register is covered by a camera these days.

[Ultegra134]

@Ultegra134, I don't think this is about anonymity in the literal sense, but about being able to buy such a card without anyone asking you for your personal information, ID card, or anything similar. Such services exist and I can confirm that they work, whether it is about paying online or using such cards in mobile wallets and paying at POS devices.

What such services generally do not allow is to use VPN/Tor when ordering a card - but if you are going to pay offline, then there is no point in hiding your identity, considering that every cash register is covered by a camera these days.

I see! This is actually quite interesting, and if I'm honest, I had no idea that this concept actually existed. So you basically do not submit any KYC, but have a card to your name, right? You're paying through a POS machine though, how does it work? It certainly cannot be anonymous, just like you said, because when you're paying it automatically substracts some basic details, like your name.

Do you have any recommendations? If we're spoiling this discussion you could even send me a PM.

[promise444c5]

@Ultegra134, I don't think this is about anonymity in the literal sense, but about being able to buy such a card without anyone asking you for your personal information, ID card, or anything similar. Such services exist and I can confirm that they work, whether it is about paying online or using such cards in mobile wallets and paying at POS devices.

What such services generally do not allow is to use VPN/Tor when ordering a card - but if you are going to pay offline, then there is no point in hiding your identity, considering that every cash register is covered by a camera these days.

I see! This is actually quite interesting, and if I'm honest, I had no idea that this concept actually existed. So you basically do not submit any KYC, but have a card to your name, right? You're paying through a POS machine though, how does it work? It certainly cannot be anonymous, just like you said, because when you're paying it automatically substracts some basic details, like your name.

Do you have any recommendations? If we're spoiling this discussion you could even send me a PM.

Yeah it does, they have different pattern.. some with minimal/No KYC(depends ) but can connect to a non-custodial wallet whenever you need to make a withdrawal ( still no point of self-custody though as it will get involved with a third party somehow and maybe get frozen there due to several reasons   ).. not common with reputable ones though!
You can check the link Amphenomenon dropped  above.. there’re  lots of it discussed on the thread and of course you can go ahead , discussing it to Lucius as well..