MEXC Global's USDT Cashback Card Challenges EU Stablecoin Interest Ban

MEXC Global has launched a USDT cashback card on the Visa network, offering up to 10 percent cashback and up to 7 percent annual return on USDT held with the exchange.

The card's benefits, however, have raised questions about how they comply with the MiCA interest ban on stablecoins. According to Article 50 of the EU's Markets in Crypto-Assets Regulation (MiCAR), licensed providers are banned from paying interest on regulated stablecoins, known as e-money tokens.

The key distinction lies in the fact that USDT is not authorized as an e-money token under MiCA, so the interest ban does not directly apply to offers built on it. Additionally, cashback tied to spending is legally distinct from interest paid on a holding balance and is therefore allowed by the EU's rules.

The card's features include up to 10 percent cashback on purchases, with three tiers: Standard (4 percent), Premier (6 percent), and Elite (10 percent). The cashback lands in a user's spot account on the 15th of the following month. MEXC also waives issuance, annual, and top-up fees until September 30, 2026.