<\/p>\n
Some unverified SolCard users lost access to their virtual debit cards, but a company representative says a no-KYC option will be reinstated.<\/p>\n
SolCard, a Solana<\/a>-focused debit card platform that gained popularity by offering users an easy way to spend their crypto without Know Your Customer (KYC) requirements, quietly removed its key feature last month, veiling the move as an upgrade. However, a spokesperson for SolCard tells The Defiant that the move is only temporary.<\/p>\n \u201cWe plan to remain non-KYC,\u201d the SolCard spokesperson said, adding, \u201cWe will be back up and operating with non-KYC soon,\u201d without specifying the timeframe.<\/p>\n Last month, many SolCard users who had not verified their identities on the platform discovered that their virtual Visa cards had vanished from the SolCard mobile app.<\/p>\n A June 18 company update<\/a> from SolCard introducing what the team calls \u201cSolCard Full Access\u201d sheds some light on the situation. The Full Access tier for SolCard users requires identity verification. The SolCard team also stated that it will only issue new Visa<\/a> cards, which support Apple Pay and Google Pay, to users in the new \u201cverified tier,\u201d citing a requirement from its banking partner.<\/p>\n \u201cWe had SolCard Full Access planned for later this year, but our bank needed us to launch it now to keep offering Visa cards,\u201d the team said in the announcement.<\/p>\n In a June 26 post<\/a> on X, without mentioning the KYC requirement directly, the team clarified that users who had lost access to their virtual debit cards could withdraw their funds, saying, \u201cIf you’ve had a card cancelled or frozen, you may request a USDT withdrawal and receive it INSTANTLY, starting right now.\u201d<\/p>\n The SolCard Full Access announcement also notes that any frozen Visa cards allow fund transfers or refunds, and users have the option to upgrade to Full Access \u2014 meaning verify their identity \u2014 to unfreeze them. Mastercard<\/a> issuance and fees remain unchanged and do not require KYC, though those cards do not support Apple Pay or Google Pay.<\/p>\n \u201cWe\u2019re committed to bringing back a privacy-centered IRL solution in the near future. However, our current priority is working closely with banks and partners to stabilize our Visa offering. This means our efforts are temporarily focused on meeting reliability standards set by the issuing institutions,\u201d the SolCard team added.<\/p>\n Before the change, anyone could generate a virtual Visa card with no identity checks. Users paid a 5% fee to top up their cards with SOL<\/a>, USDT,<\/a> or USDC<\/a>, and a 2% fee on foreign currency purchases, with a monthly cap of $10,000.<\/p>\n Jamie Elkaleh, chief marketing officer at Bitget Wallet, told The Defiant that SolCard\u2019s shift was \u201centirely expected\u201d as it\u2019s \u201cin line with broader financial trends,\u201d noting that authorities worldwide are \u201ctightening regulations.\u201d<\/p>\n \u201cFATF\u2019s Travel Rule, Europe’s MiCA, and US agencies such as FinCEN are increasingly focusing on identity verification in crypto transactions. As a Visa\/MC issuer, SolCard would face rising compliance demands. Offering non\u2011KYC cards amplifies fraud, money laundering, and sanctions evasion risks. Card networks and partner banks are unlikely to sustain this indefinitely, and the operational overhead becomes harder to justify,\u201d Elkaleh said.<\/p>\n Gal Arad Cohen, a partner at the Israeli crypto law firm S. Horowitz & Co., said in a commentary for The Defiant that as crypto adoption gains momentum and an increasing number of centralized actors enter the market, regulatory compliance is becoming a crucial, if sometimes complex, factor for those aiming to operate in multiple jurisdictions.<\/p>\n She and Ilya Keselman, an associate at the firm, noted that greater compliance could help boost user trust and support growth, but cautioned that regulation shouldn\u2019t come at the expense of crypto\u2019s foundational principles. \u201cThis isn\u2019t a one-way street,\u201d they said.<\/p>\n \u201cAs the ecosystem evolves, we expect to see more decentralized solutions leveraging technologies like DeFi protocols, immutable smart contracts, and non-custodial wallets, alongside more privacy-preserving tools such as zero-knowledge proofs, self-sovereign identity, and on-chain compliance layers,\u201d they said, adding that those technological solutions may offer a path to balance regulatory requirements such as AML, CTF, and sanctions compliance with the crypto community\u2019s core value of privacy.<\/p>\n On July 3, SolCard clarified in another X post<\/a> that \u201call users have been able to withdraw their funds if they chose to do so,\u201d adding that the team is now working on \u201cSolCard v2,\u201d though details weren\u2019t disclosed.<\/p>\n SOLC<\/a>, SolCard\u2019s native token, dropped nearly 87% on June 18, the day SolCard\u2019s Full Access announcement was published, and has been trading sideways since then.<\/p>\n SolCard isn\u2019t the only KYC-free crypto-funded debit card<\/a> out there, as other virtual cards like BingCard and Laso Finance, among others, also offer cards that don\u2019t require ID verification. These cards have gained popularity among users who want to maintain their privacy or avoid detection by tax authorities. <\/p>\n BingCard and Laso Finance did not respond to The Defiant\u2019s request for comment.<\/p>\nSolCard\u2019s no-KYC Visa<\/h2>\n
Balancing Compliance and Privacy<\/h2>\n
No-KYC Space \u2018Shrinking Fast\u2019<\/h2>\n