Robinhood Wallet Memecoin Purchases Bypass Crypto Coding Rules
A recent investigation by Traders Union has found that some users can purchase memecoins through Robinhood Wallet and Fomo using credit cards, potentially bypassing network restrictions on crypto purchases.
The transactions were coded as 'digital goods media' rather than cryptocurrency, allowing users to complete the purchases with Visa and Mastercard credit cards through Apple Pay or Google Pay without extra identity checks.
Standard credit card points or cash back were earned on these memecoin transactions, suggesting that issuers did not flag them as crypto purchases at the point of processing.
The New York Attorney General's office is reviewing the compliance and disclosure practices for such digital wallet payments, while Chase has opened a case with Visa over miscoded transactions.