Robinhood Wallet, Fomo Face Scrutiny Over Memecoin Purchases Without KYC Checks

Robinhood Wallet and Fomo have been allowing users to purchase memecoins without undergoing separate know-your-customer (KYC) checks. The purchases are classified as 'digital goods/media' rather than cryptocurrency transactions, enabling users to receive standard credit card benefits such as points and cash back.

The Block reported on September 1 that users can directly buy memecoins like dogwifhat (WIF) on Robinhood Wallet and Fomo using Visa and Mastercard credit cards. The transactions are also available through Apple Pay and Google Pay.

JPMorgan Chase has asked Visa to investigate the alleged misclassification, stating that the transactions should not qualify for credit card rewards. The New York State Attorney General's Office is also reviewing the payment structure.