Visa closing Crossmint memecoin rewards loophole after The Block investigation reveals card network compliance gap.
Regulation & Gov ·
Visa is moving to shut down a compliance gap that allowed memecoin rewards to be distributed through Crossmint, a crypto payment infrastructure provider. According to reporting, the card network's action follows an investigation that exposed how the arrangement skirted standard payment card rules.
The setup functioned by routing memecoin rewards through Crossmint-powered applications, creating a technical pathway that circumvented Visa's typical restrictions on cryptocurrency transactions. Memecoin sales enabled by this mechanism remain operational across multiple platforms as of the report's publication, though Visa's enforcement window is expected to close within the following week.
The closure of this loophole raises questions about the broader compliance landscape for cryptocurrency reward programs and payment card integrations. It remains unclear whether similar arrangements exist elsewhere in the ecosystem or what enforcement mechanisms Visa will deploy against any non-compliant partners beyond the grace period.