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How does Laso Finance operate in a legal and compliant manner?

Laso Finance issues open-loop and closed-loop prepaid cards and gift cards, which aligns with traditional models (e.g. buying a gift card in a store with cash)

Updated over 3 months ago

Laso Finance sells open and closed loop prepaid cards and gift cards.

Today, you can go into say, Target, and buy a prepaid gift card with cash. That is a no-KYC transaction. Using the same regulatory framework, you can deposit stablecoins into Laso Finance and get a prepaid or gift card.

There are quite a few rules and regulations required for sellers of prepaid access like Target, or Laso Finance. Complying with these regulations is what makes Laso Finance possible.

Some of the user-facing regulations are:

  1. $1,000 max load on a card.

  2. $1,000 max daily spend per card.

  3. Required processes are in place to reasonably prevent the purchase of $10,000 or more of prepaid access in a single day.

  4. No transfers of value.

Items #1 and #2 are fairly straightforward. Those are implemented at the server-level.

#3 is a bit more complex, but it's somewhere that Laso Finance really excels. We look at a variety of signals to prevent unauthorized purchases, such as, but not limited to: device fingerprinting, spending behavior, 3rd party on-chain forensics, and on-chain activity.

Lastly, #4 is covered more in-depth in the Transfer of Value Laso troubleshooting item.

Laso Finance is a registered money services business (MSB) with FinCEN. We are compliant with all relevant laws and regulations, including anti-money laundering (AML) requirements.

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