EBA proposes penalties of up to 12.5% of annual revenue for token issuers

The European Banking Authority issued a consultation paper setting standardized MiCA penalties for significant token and e-money token issuers ahead of the EU's July 1 licensing deadline.

Summary

The European Banking Authority on June 26 published a consultation paper proposing standardized penalties for crypto-asset issuers that breach MiCA, adding detail to how the EU could enforce its new crypto regime ahead of the July 1 licensing deadline. Under the proposal, noncompliant issuers of significant tokens could face fines of up to 12.5% of annual revenue or twice the profits gained from violations, while significant e-money token issuers could face fines of up to 10% of annual revenue.

Terms & Concepts
  • MiCA: The European Union's Markets in Crypto-Assets framework governing crypto-asset issuers and service providers.
  • e-money token: A crypto-asset designed to maintain stable value by referencing a single official currency.
  • consultation paper: A draft regulatory document that seeks feedback before rules are finalized.