The European Banking Authority laid out a proposed penalty framework on Friday that can strip non-compliant significant token issuers of up to 12.5% of their annual revenue. The move marks the first concrete enforcement detail under MiCA, the EU's Markets in Crypto-Assets Regulation, which took effect in December 2023.
The EBA's framework targets firms that fail to meet custody, operational resilience, and market abuse requirements. The penalties stack—meaning violations in multiple categories compound the fine. Firms classified as "significant" under MiCA rules face the steepest exposure, though the EBA distinguished between infringements that threaten consumer protection versus those that breach administrative procedures. The latter draw lighter penalties.
MiCA requires token issuers to register and maintain capital buffers. The ruleset applies to stablecoins and other crypto assets traded in the EU, with no carve-out for decentralized protocols. Enforcement timing remains fluid. The EBA proposal must clear EU member-state review before it becomes binding, a process that typically stretches months. Member states can also apply stricter national penalties, creating a patchwork of enforcement intensity across the bloc.
The framework's release signals that regulators are moving from rule-writing to operational implementation. Issuers already operating in the EU face compliance obligations now, even as enforcement guidance hardens. Entities that sidestepped early registration or ducked the custody and capital requirements now know the cost profile if caught.