Fomo and Robinhood Wallet Credit Card Purchases of Memecoin May Evade Crypto Regulations

According to ChainCatcher, an investigation reveals that users can directly purchase Memecoin using credit cards on Fomo and Robinhood Wallet via Apple Pay or Google Pay, without the need for KYC identity verification, and transactions can accumulate credit card rewards. In tests purchasing WIF, Visa and Mastercard transactions were classified under merchant category code MCC 5815 (digital goods media), rather than the crypto asset categories MCC 6012 or 6051, which typically carry a crypto designation and do not earn rewards. This transaction is supported by Crossmint's Token Checkout product. Crossmint claims this classification is appropriate, citing guidance released by the SEC and CFTC in March of this year, which considers certain Memecoins like WIF as "digital collectibles." However, Chase stated that the Visa transaction was not marked as a cryptocurrency purchase and has initiated a review with Visa; the New York Attorney General's office is also examining the matter. Payment experts believe that the SEC's stance is in a "completely different framework" from card organization rules.

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