How MEXC sidesteps the MiCA interest ban on stablecoins with a 7% USDT yield

A new crypto card promises something that sounds almost too good inside the European Union: up to 10 percent cashback in USDT on every purchase, plus up to 7 percent a year on the USDT balance sitting behind it. Since August 31, 2026, MEXC Global has been advertising exactly that combination through a Visa-linked card, and the numbers raise an obvious question for anyone who has followed European crypto rules: how does this square with the MiCA interest ban on stablecoins? The answer sits in a single, tightly worded article of EU law — and it explains why offers like this one don’t come from providers licensed inside the bloc.

Key takeaways

• Article 50 of MiCA bans licensed EU providers from paying interest on regulated stablecoins, known as e-money tokens, and the ban covers bonuses, rewards and flexible savings products, not just interest by name.
• MEXC Global launched a USDT card on the Visa network on August 31, 2026, offering up to 10 percent cashback and up to 7 percent annual return on USDT held with the exchange.
• USDT is not authorized as an e-money token under MiCA, so the MiCA interest ban on stablecoins does not directly apply to offers built on it.
• Cashback tied to spending is legally distinct from interest paid on a holding balance, and only the latter falls under the EU ban.

MiCA’s interest ban on stablecoins, explained

Article 50 of the EU’s Markets in Crypto-Assets Regulation, or MiCAR, flatly stops licensed providers from paying anything for holding a regulated stablecoin. The rule applies in two layers: issuers of e-money tokens cannot grant interest, and crypto-asset service providers — exchanges, custodians, card issuers — cannot grant interest either, even if they never issued the token themselves.

The part that closes every loophole is paragraph three. It treats any remuneration or benefit tied to how long someone holds a token as interest, regardless of what it’s called. Bonuses, rewards, discounts, “flexible savings products” — if the payout depends on holding time rather than a transaction, it counts. That means a provider can’t dodge the MiCA interest ban on stablecoins just by renaming the product. The EU’s own recital behind the rule frames the goal plainly: stopping e-money tokens from becoming an interest-bearing store of value that could pull deposits out of the regulated banking system. A near-identical prohibition, under Article 40, applies to asset-referenced tokens for the same reason. Inside the authorized European framework, there’s no threshold at which paying running interest on a stablecoin becomes acceptable.

MEXC’s new USDT card ties cashback to a 7 percent yield promise

The MEXC Global Card launched as a virtual Visa product that plugs into Apple Pay and Google Pay and draws funds from a user’s USDT balance. According to MEXC’s own announcement, reviewed by crypto.news on the day of launch, cashback runs on a tiered structure based on a customer’s VVIP status and an internal “M-Score” tied to trading activity, Earn subscriptions and platform tasks.

Cashback tiers and spending limits

Three tiers apply: a Standard level paying 4 percent cashback capped at 100 USDT a month, a Premier tier at 6 percent capped at 300 USDT, and an Elite tier reaching 10 percent capped at 800 USDT monthly. Cashback lands in a user’s spot account on the 15th of the following month, and refunded purchases or certain merchant categories can reduce the final payout. MEXC waives issuance, annual and top-up fees, and purchase fees stay at zero until September 30, 2026, before rising to a rate starting at 1 percent. Spending caps sit at 80,000 USDT per transaction and 1 million USDT per day, and applicants must clear enhanced identity verification, including proof of address, before approval.

Separately, MEXC offers a flexible savings product through its Earn feature that pays cardholders up to 7 percent annualized on subscribed USDT, with no lock-up period. MEXC CEO Vugar Usi described the card as part of a broader push to treat digital assets as more than a trading instrument. “We want users to see digital assets not simply as an investment tool, but as part of a complete financial journey, from saving and yield-generating products to principal-protected solutions and, ultimately, everyday spending,” Usi said. The launch lands amid a broader surge in stablecoin-linked card spending: monthly volume tracked across the sector hit $759 million in July 2026, roughly 2.5 times the level a year earlier, with USDC and USDT together accounting for 84 percent of that activity.

USDT’s regulatory gap

Here’s the technical detail that headlines often skip: Article 50 only captures e-money tokens, meaning tokens formally authorized under MiCAR. USDT does not hold that authorization. Its issuer, Tether, has not applied for it, and MiCA-licensed trading venues in the European Economic Area stopped listing USDT in trading pairs during 2026, prompting Kraken, Binance and Bitpanda to restructure their European offerings.

Because the token itself sits outside the regulated e-money category, the MiCA interest ban on stablecoins doesn’t reach directly into an offer built on USDT. But that gap cuts both ways: a provider operating fully inside the European licensed framework still cannot pay running interest on any regulated stablecoin. So if an interest-bearing USDT offer shows up for an EU user, either the provider is working outside that licensed framework, or the token itself falls outside it — or both.

What to check before you sign up for a stablecoin cashback card

Anyone comparing crypto cards under evolving European crypto regulation should separate two questions that often get blurred: is a provider licensed, and is a specific payment actually interest? Both determine whether an offer fits inside the EU’s rules or sits outside them.

Cashback versus interest

Cashback tied to spending — the act of making a purchase — is not remuneration for holding a token over time, so it doesn’t fall under the ban’s paragraph on holding-period benefits. Interest paid simply because a balance sits untouched is the opposite case, and that’s precisely what Article 50 targets. Before applying, users can check BaFin’s company database and consumer notices, then cross-reference the European MiCA register maintained by ESMA. Neither a missing warning nor an absent listing is a guarantee of safety, but a positive licensing entry is the stronger signal.

Taxes and identity checks

Every card payment funded from a crypto holding is effectively a disposal of that asset at the moment of purchase. In Germany, disposals within a year of acquisition can count as private disposal transactions for tax purposes, and cashback rewards add further events to track. Combined with enhanced identity verification requirements, users should weigh both the data-sharing exposure and the record-keeping burden before uploading documents or funding a balance. Scaling the advertised cashback rate against monthly caps, purchase fees and currency conversion costs gives a more realistic picture of what a card actually returns compared with the headline percentage.

FAQ

Does MiCA Article 50 ban all interest on stablecoins?

Article 50 bans licensed EU providers from paying interest on regulated stablecoins, known as e-money tokens, and the ban extends to any remuneration tied to how long a token is held.

Why does the MEXC Global USDT card offer interest despite the MiCA interest ban?

USDT is not authorized as an e-money token under MiCA, so the interest ban in Article 50 does not directly apply to offers built on USDT.

Is cashback on spending the same as interest under MiCA rules?

No. Cashback tied to spending is legally distinct from interest paid on a balance, and it is not covered by the Article 50 interest ban.

What should consumers do before using a crypto card offering interest on stablecoins?

Consumers should verify a provider’s authorization status with regulators, distinguish cashback from interest, and prepare for tax reporting tied to crypto transactions before applying.

Article produced with the assistance of artificial intelligence and reviewed by the editorial team.