TLDR Tech / Crypto
Robinhood and Fomo Users Buy Meme Coins With Credit Cards
Robinhood Wallet and social trading app Fomo allow users to purchase meme coins, including WIF, through Crossmint using Visa, Mastercard, Apple Pay, and Google Pay without separate KYC verification, according to a The Block investigation. Crossmint routes these transactions as "digital goods/media" rather than crypto purchases, a classification that bypasses standard credit card network crypto restrictions and qualifies buyers for rewards points or cash back they would not earn on a properly coded crypto transaction. Chase flagged the Visa transactions as incorrectly classified and has asked Visa to investigate, while the New York Attorney General's Office confirmed it is reviewing the matter. Crossmint has defended its classification approach as scrutiny from both a major bank and a state regulator mounts.
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