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