EBA Unveils 12.5% Penalty Threshold for Significant Crypto Issuers Under MiCA

The European Banking Authority (EBA) has announced a new penalty framework for major crypto issuers that violate the Markets in Crypto-Assets (MiCA) regulation. Under this proposal, significant crypto issuers could face fines of up to 12.5% of their annual revenue if they breach MiCA.

The EBA's two-step approach assesses the severity of a violation and adjusts the fine based on aggravating or mitigating factors. Issuers of significant asset-referenced tokens (ARTs) could face fines of as much as 12.5% of their annual revenue, while issuers of significant e-money tokens (EMTs) could be fined up to 10%.

The proposal was released ahead of MiCA's licensing requirement taking effect on July 1. From that date, any company seeking to provide crypto services or issue stablecoins in the European Union's 27 member states must obtain formal authorization from a national regulator.