European Banking Authority Unveils Plan to Fine Crypto Issuers Up to 12.5% of Revenue

The European Banking Authority (EBA) has published a consultation paper proposing a standardized framework for penalizing cryptocurrency issuers that violate the European Union's landmark digital-asset laws under the MiCA regulatory framework. The proposal, released on June 26, specifically targets issuers of what are classified as "significant tokens" and establishes a two-step process for determining fines. Under the proposed framework, the EBA would first assess the baseline severity of an infraction before potentially imposing penalties that could reach as high as 12.5% of an issuer's annual revenue. Cointelegraph reported that the framework "establishes a standardized approach for fining issuers of 'significant' tokens, with potential multimillion-euro penalties." The move signals a toughening enforcement posture as the European Union moves toward finalizing its comprehensive regulatory architecture for digital assets. ZeroHedge noted that the consultation paper "proposes a standardized framework for penalizing cryptocurrency issuers that violate the EU's digital-asset laws (MiCA)" and added that the process "could strip non-compliant firms of up to 12.5% of their annual revenue." "The consultation paper, published June 26, establishes a standardized approach for fining issuers of 'significant' tokens, with potential multimillion-euro penalties." This language underscores the EBA's intent to create a clear and predictable penalty system, which industry participants have been seeking since MiCA's adoption. "The framework targets issuers of 'significant tokens' and establishes a two-step penalty process that could strip non-compliant firms of up to 12.5% of their annual revenue." The consultation period will allow stakeholders to provide feedback before the framework is finalized, marking another step in the EU's effort to regulate the crypto sector with a consistent set of rules across member states.

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