MEXC Global USDT Card Sparks Questions About MiCA Interest Ban

The MEXC Global USDT card offers up to 10% cashback and up to 7% annual return on USDT held with the exchange, raising questions about how this squares with the MiCA interest ban on stablecoins.

MiCA's Article 50 bans licensed EU providers from paying interest on regulated e-money tokens, including any remuneration tied to holding time. However, since USDT is not authorized as an e-money token under MiCA, the ban 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. MEXC's new card ties cashback to a 7% yield promise through its Earn feature, which pays cardholders up to 7% annualized on subscribed USDT.