'No-KYC' Crypto Card Services Exploit American Banking System Loophole

A recent investigation by Fintech Business Weekly discovered that several 'no-KYC' crypto card services are using the American banking system to facilitate transactions, despite openly advertising their lack of identity verification.

The investigation traced the bank identification numbers (BINs) on these services to five US financial institutions: Fifth Third Bank, The Central Trust Bank, Column, Regions Bank, and Sutton Bank. One of these issuers, Sutton Bank, has operated under a federal consent order since 2024 due to BSA/AML compliance deficiencies.

The mechanism used by these no-KYC services is based on the corporate-card design, which allows companies to issue cards to employees or contractors without individual identity verification. This assumption is that the employer knows who its cardholders are and bears responsibility for their spending.

However, these services exploit this assumption by standing up a shell entity, passing the lighter corporate check, then distributing cards to anyone willing to load stablecoins. The individual spender is never identified by any party in the chain, and the services collectively process millions of dollars from unidentified users.