Robinhood Wallet and Fomo Support Credit Card Meme Coin Purchases Spark Controversy, Suspected of Bypassing Credit Card Cryptocurrency Transaction Rules

BlockBeats News, September 2nd. Robinhood Wallet and Fomo app now support users to directly purchase Meme coins using Visa or Mastercard credit cards via Apple Pay or Google Pay, without the need for completing identity verification. The transactions also allow users to accumulate credit card points or cashback as usual, sparking controversy. This service is provided by the crypto infrastructure company Crossmint, whose Token Checkout product categorizes Meme coin transactions as MCC 5815 "Digital Goods & Media" instead of cryptocurrency purchases, a category originally used for digital goods such as e-books and digital movies.

Chase, the card-issuing bank under JPMorgan Chase, stated after an investigation that Visa transactions were not classified as cryptocurrency purchases. The bank believes that the classification code was used incorrectly and should not earn points. Chase has raised a case with Visa regarding this issue. The New York State Attorney General's Office is aware of this matter and is currently reviewing it. However, Crossmint insists that the classification is appropriate. They argue that based on the SEC's previous statement, certain Meme coins can be considered "digital collectibles" in a securities context. They cite the SEC and CFTC joint guidance that listed WIF as an example of a digital collectible. Payment experts point out that card network rules and SEC guidance are "two completely independent systems." Visa and Mastercard have specific MCC 6051/6012 coding and special identification requirements for direct cryptocurrency transactions and do not exempt them based on being classified as "collectibles."