The European Banking Authority (EBA) has unveiled a proposed penalty framework under the Markets in Crypto-Assets (MiCA) regulation, setting the stage for multimillion-euro fines against major crypto token issuers that violate EU rules. Published on June 26, the consultation paper outlines a two-step methodology for calculating sanctions, first assessing the severity of an infringement and then adjusting based on aggravating or mitigating factors. Statutory penalties could reach up to 12.5% of annual turnover for issuers of significant asset-referenced tokens and 10% for issuers of significant e-money tokens. In cases where violators earned profits from the breach, fines may climb to twice the amount gained.
The move comes just days before the July 1 MiCA licensing deadline, when all crypto firms operating in the European Union must obtain authorization from a national regulator. The EBA’s proposal aims to ensure supervisory authorities apply financial sanctions uniformly across the bloc. The consultation period remains open until September 28, giving industry participants time to submit feedback.
Meanwhile, Binance, the world’s largest crypto exchange, has begun restricting services for EU users after failing to secure a MiCA license. The company withdrew its application in Greece and has informed customers in Poland, France, Italy, and Spain to withdraw their funds. Binance recorded over $400 million in net outflows in the week of June 22, though the exchange notes daily flows in the billions are not uncommon. Rivals Coinbase and OKX have seized the opportunity, launching promotional campaigns to attract displaced users—Coinbase offering a 5% transfer bonus and OKX providing up to 8% deposit matching for eligible users in the European Economic Area. Binance stated it expects to obtain a license in France in the coming months, emphasizing the EU remains an important market despite euro trading accounting for only about 1% of its spot volume.
The enforcement of MiCA and the EBA’s penalty regime signal a new era of regulatory intensity in European crypto markets, directly impacting exchanges, stablecoin issuers, and token projects that fall under the significant asset-referenced or e-money token categories.
