Prepaid Cards and Crypto

[Btraveler]

Hello there guys,

Has someone tested the Binance card? It's working well?

About that type of prepayment or debit cards which are linked to your personal or company account like the Binance card, the Advcash debit card, etc...What do you thing on terms of reporting under CRS to your high tax country?

Someone told me that as per debit visa and debit mastercard you pass verification, you're fully identified. Or also for Mercury EMI in USA or similar, the same. The fact is:

- When you cash out in a cashier with Advcash or Binance card in your home country, the banks are informing your local tax about that? (about there's a withdrawal of 3K in your name under a visa o mastercard)
- If you make purchases online at a lottery website, hosting, online supermarket, etc...you're also targeted the same way like cashing out in a local cashier?

 

[Btraveler]

some info or feedback on this?

 

[Saho]

I'd say there is no reporting to your local tax authorities when doing a cash withdrawal. There's not lots of information available online, but this might be useful: How Much Can I Withdraw From My Savings Account Without It Being Reported to the IRS?

This probably depends a bit on the country, but normally ATM withdrawals from cards such as Advcash's cards can't be monitored the same way as local banks. Local banks know your name and balance and much more. But I highly doubt that they're interested in these things. They're probably more interested in finding people that make cash deposits directly to the bank account.

And I would say that buying things that doesn't affect your tax status in any way. Although extreme situations could lead the bank to ask questions. Like, 10k spent for gambling or whatever in 1 day only.

But if you're that careful, why are you not trying to get an advcash with another name?

 

[Btraveler]

Well, I prefer not to user darks and similar. Maybe one day your account can be locked and lose all the money or crypto you have inside...

As far as I know, the banks in your local EU country or US country, share information to tax authorities about cash withdrawals on local cashieres. However, maybe they don't report you if you don't cash out huge amounts like 10K or several cashouts per day.

Anyway, suppose you have an UK LTD (which is easy to open) or similar with an active Advcash or Payeer account. It adds a layer to your scheme and I suppose that platforms are less interested in report companies/UBO than individuals. I'm right? I mean, it's better to do with an intermediary company than your personal account?

 

[Saho]

Well, I prefer not to user darks and similar. Maybe one day your account can be locked and lose all the money or crypto you have inside...

As far as I know, the banks in your local EU country or US country, share information to tax authorities about cash withdrawals on local cashieres. However, maybe they don't report you if you don't cash out huge amounts like 10K or several cashouts per day.

Anyway, suppose you have an UK LTD (which is easy to open) or similar with an active Advcash or Payeer account. It adds a layer to your scheme and I suppose that platforms are less interested in report companies/UBO than individuals. I'm right? I mean, it's better to do with an intermediary company than your personal account?

Yes, that's right. But it doesn't really matter when you're taking it out anyway immediately. Advcash allows withdrawing 2k per day and this could be your total loss when having a personal account. That's fine if you're asking me. Normally Advcash doesn't do anything when depositing crypto and withdrawing it. They just want to have a selfie when depositing by credit card or SEPA.

Sadly I can't respond to your last question. Someone here might be able to respond to that.