EU Stablecoin Interest Ban Differs From Germany’s €256 Income Tax Threshold
Photo: TokenPost
The European Union prohibits interest tied to holding covered stablecoins, while Germany applies a separate tax threshold to some private crypto-lending income, a distinction that matters for U.S. readers comparing yield offers. Under the Markets in Crypto-Assets regulation (MiCA), issuers and crypto-asset service providers cannot grant interest connected to e-money tokens or asset-referenced tokens. An e-money token seeks a stable value by reference to one official currency. An asset-referenced token seeks a stable value by reference to another value or right, or a combination of them, including one or more official currencies. The prohibition extends beyond payments labeled as interest.
Source: TokenPost
