Crypto Giftcards (That Can Be Redeemed Without KYC)
Whether you want to buy a gift card with crypto or buy a crypto gift card without KYC, we've got you covered in our ultimate guide on crypto gift cards.
What are crypto gift cards?
Crypto gift cards are digital or physical cards purchased with cryptocurrency, loaded with a specific amount of currency, and can be used at a designated merchant or a variety of merchants. Similarly, a crypto gift card may refer to a prepaid card loaded with a specified amount of cryptocurrency, which can be redeemed through a particular exchange.
These cards can be gifted to friends, family, or colleagues, who can then redeem the value in their crypto wallets. They simplify the process of transferring cryptocurrencies, making it as straightforward as handing over a traditional gift card.
Read next: Best Crypto Exchanges Without KYC
How do crypto gift cards without KYC work?
It’s pretty straightforward, here’s how:
Purchase: The process starts with buying a crypto gift card from a trusted provider. These providers offer various denominations and cryptocurrency options, ensuring there's something for everyone.
Delivery: After purchasing, the gift card can be sent digitally via email or as a physical card. Some providers even offer customization options, allowing you to personalize the gift with a message or design.
Redemption: To redeem the card, the recipient simply follows the provided instructions, usually involving entering a unique code on the provider's platform. This code then transfers the cryptocurrency to their wallet.
Read next: What is KYC verification?
What are the benefits of crypto gift cards?
Ease of use: One major benefit of KYC-free crypto gift cards is their simplicity. Traditional methods of acquiring and transferring cryptocurrency often require extensive KYC procedures, which can be time-consuming and cumbersome. KYC-free gift cards bypass this complexity, enabling recipients to access their crypto without providing personal identification.
Anonymity and privacy: Many in the cryptocurrency space highly value privacy and anonymity. KYC processes often require sharing sensitive personal details, something many users prefer to avoid. KYC-free gift cards cater to this need, allowing users to obtain and use cryptocurrencies without disclosing personal information.
Instant access: Unlike traditional methods of purchasing cryptocurrency that involve waiting for KYC verification and transaction approvals, KYC-free gift cards can be redeemed instantly. This quick access to funds is especially appealing in the fast-moving digital world.
Read next: Best Crypto to Buy
What are the risks of crypto gift cards?
Money laundering and other illicit uses: Anonymity makes these cards more prone to being used for illegal activities like money laundering.
Lack of consumer protection: Without KYC, recovering funds from lost, stolen, or fraudulent gift cards is difficult, with little recourse for victims.
Increased fraud risk: The lack of verification allows scammers to exploit the system, increasing the risk of fraud or counterfeit gift cards.
Regulatory crackdowns: Stricter regulations on cryptocurrencies could lead to legal restrictions or bans on KYC-free gift cards, risking users’ funds.
No error or dispute recourse: Mistakes in sending or redeeming the cards can be hard to fix without identity verification.
Tax evasion: Users might bypass tax reporting requirements, leading to legal consequences if discovered later.
Theft or hacking: Anyone with the gift card code can redeem it, increasing the risk of theft.
Read next: Can the IRS track crypto?
How to pick a reliable crypto gift card provider
There are plenty of less than reputable companies out there, as well as outright scams, when it comes to crypto gift cards without KYC. That’s why when you’re picking a platform, you should consider:
Reputation: Choose established providers with good reviews and a history of reliability.
Security: Ensure the provider uses strong security measures to protect your funds and personal information.
Cryptocurrency options: Look for providers offering a broad selection of cryptocurrencies to suit your needs.
Customer support: Reliable customer support is essential in case any issues arise during the purchase or redemption process
As ever, never deposit more than you’re willing to lose and don’t give out any personal information, especially your private key!
Where can I buy crypto giftcards that can be redeemed without KYC?
There are a number of online stores you can use crypto to buy gift cards without KYC. Please note, you should always DYOR and this is not a recommendation from Koinly to use any of these sites.
Coinsbee: Buy gift cards with crypto including Ticketmaster, Amazon, and Playstation. No KYC checks below €1,000 per transaction up to a total value of €10,000.
Bitreefill: Buy gift cards with crypto, including Amazon, Uber, and Virgin. Unverified customers can make up to 15 purchases a day to a total value of $5,000, or $10,000 a month.
Coingate: Buy gift cards with crypto including Steam, Nike, and Twitch. Only applies KYC for sellers.
Live On Crypto: Buy gift cards with crypto including Amazon, Apple, Google Play and more. Advertises no KYC on sign-up or check out.
Bitpay: Buy gift cards with crypto including Airbnb, DoorDash and Gampestop, but KYC may apply. Unverified customers officially have a transaction threshold of $3,000, or $1,000 if based in the EU.
G2a: Offers gift cards of crypto including for Binance and Coinbase. Only applies KYC for sellers.
A warning on tax…
We get it - nobody likes paying taxes, and some investors see crypto gift cards without KYC as a means to cash out their crypto without the tax man knowing about it. But if the IRS catches wind of you trying to avoid paying tax on your crypto, the penalties are steep. You can learn more in our crypto tax evasion guide, but your best bet is to report your crypto accurately and avoid the wrath of the IRS.
