Visa to close Crossmint memecoin rewards loophole following The Block investigation: report

What happened

Visa is closing a loophole that allowed Crossmint-powered memecoin rewards on two apps, according to a report. The sales are still live, but Visa's grace period is expected to end next week.

Confirmed

Global impact / market context

This means crypto reward programs tied to payment networks may face stricter rules. Companies using similar tactics could lose revenue or need to change their business models to comply with Visa's policies.

Analyst inference

Payment networks like Visa are tightening oversight of crypto-related activities. This could push crypto businesses to find alternative payment methods or reduce promotional rewards, potentially affecting their customer growth and profitability.

Analyst inference

What to watch

1. Watch for Visa's official announcement confirming the exact date when the grace period ends and whether any extensions are granted. Confirmed
2. Investors should track whether Crossmint or the two apps announce new reward structures or partnerships to replace the closed loophole. Proposed
3. Observe if other payment networks follow Visa's lead, which could raise compliance costs for crypto reward programs industry-wide. Analyst inference

Evidence

• theblock.co