EBA proposes fines up to 12.5% of turnover for crypto token issuers

The European Banking Authority has proposed a standardized penalty framework that would allow supervisors across the European Union to fine issuers of significant crypto tokens up to 12.5% of annual turnover for breaching the Markets in Crypto Assets regulation.

The consultation paper, published June 26, lays out a two-step methodology. Supervisors would first assess the seriousness of each infringement, then adjust the penalty based on aggravating or mitigating circumstances. The proposal also allows fines of up to twice the profit gained from a violation.

The framework targets issuers of significant asset-referenced tokens and significant e-money tokens. Fines for the latter top out at 10% of turnover. The EBA said the methodology aims to create a consistent penalty process across the 27-member bloc.

The 12.5% cap is the highest statutory fine under MiCA for significant token issuers, the consultation paper shows.

The consultation arrives days before the July 1 MiCA licensing deadline. Crypto firms need authorization from a national regulator to offer services or market stablecoins across the EU. Firms that continue operating without approval risk enforcement action under the proposed penalty rules.

Binance has already started restricting parts of its European business after failing to secure MiCA authorization before the deadline. The exchange withdrew its MiCA application in Greece and said it intends to reapply through another EU member state, according to company statements. User notices shared on social media confirmed that Binance will stop onboarding new EU customers from July 1 and limit selected services for existing users. Digital assets will remain available for withdrawal.

Competitors have moved quickly to capture departing Binance users. Coinbase launched a campaign in several European markets offering a 5% transfer bonus to eligible users who move assets before July 13. OKX introduced welcome rewards and deposit matching of up to 8% for qualifying customers in the European Economic Area. The scramble to fill the gap mirrors similar moves by other exchanges, such as Gate's recent deposit rewards for Binance's displaced EU users.

The proposed penalties cover a range of violations, including unauthorized public disclosures and organizational compliance failures. The EBA said the methodology is intended to ensure uniform application of financial sanctions across member states.

The EBA will accept feedback on the proposal until Sept. 28 before finalizing the methodology. The July 1 licensing deadline remains the more immediate risk for firms without authorization.