To be honest, I thought your refusal was probably well justified considering the disproportionate levels of credit card fraud involved in anything to do with crypto. I'd love to see your end of year statistics now...
My personal observation. A large proportion of credit card payment were fraud, or flagged as such. It was such a huge number (% wise) that I (thought I) understood why stripe pulled the rug out. And in another project I observed a very large and sudden increase at attempted fraud right after elements of crypto were introduced (including attempts at impersonating me, and someone else involved).
But honestly, when it comes to the crypto world, I'm that guy who laughed at that other guy for buying bitcoin at 20 cents. There was a lesson there somewhere.
I mean that's different from the kind of fraud the parent post was talking about. If a user used their credit card to buy an NFT that quickly went to zero, that's not a fraudulent credit card transaction still - the user authorized that transaction. CC fraud would be if someone stole your credentials and bought something before the card was revoked.
There are always scams of different flavours around - that doesn't stop anyone from picking one or another. The appearance of easy money attracts those who seek easy money.
I'm really curious what your source is for this. Anyone legit in crypto who's taking fiat is doing way more KYC than your average ecommerce store.