EU watchdog EBA details big crypto fines as MiCA laws bite
The European Banking Authority unveiled a proposed penalty framework on Friday, as the EU watchdog EBA details big crypto fines that can reach 12.5% of annual turnover for issuers of significant asset-referenced tokens and 10% for significant e-money tokens, days before MiCA's July 1 licensing deadline reshapes Europe's market. The consultation paper, published June 26, standardizes how supervisors will punish violations under the bloc's landmark digital-asset rules.
Key Takeaways
- The EBA's June 26 consultation paper sets a two-step process for calculating fines on significant token issuers.
- Maximum penalties reach 12.5% of turnover for asset-referenced tokens and 10% for e-money tokens, or twice violation profits.
- Crypto firms must secure national MiCA licenses by July 1 or halt EU services and risk enforcement.
- Binance withdrew its Greek MiCA application and will restrict EU onboarding from July 1.
- Industry feedback on the penalty framework is open until September 28.
What did the European Banking Authority propose?
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 consultation paper establishes a standardized playbook for penalizing violations of the Markets in Crypto-Assets (MiCA) regulation.
Under the proposal, supervisors use a two-step process: assess baseline infraction severity, then factor in aggravating or mitigating behavior. MiCA forces token issuers and crypto service providers to meet bank-like compliance standards to access the single European market. Track updates in our Fintech & Crypto Alerts section.
How large can MiCA penalties get?
According to the EBA consultation paper, final penalties could hit ceilings of 12.5% of annual turnover for issuers of significant asset-referenced tokens. Significant e-money token issuers face a 10% cap, or two times the profits generated by the violation.
The caps are designed to deter even the largest global digital-asset operators. Firms without regulatory passports by July 1 risk infractions such as unauthorized disclosures that the new framework is built to penalize. Details appear in European Banking Authority consultation materials.
Why does the July 1 deadline matter now?
By July 1, cryptocurrency firms must secure formal licenses from national regulators to legally offer services or market stablecoins within the 27-nation bloc. That ends a transitional grace period under looser local rules.
Firms without MiCA authorization face being forced to halt operations. The penalty framework lands just days before that mandate takes effect, signaling that the era of leniency is over.
How is Binance responding to MiCA enforcement?
Binance notified EU users that key services will be restricted after it failed to secure MiCA authorization before July 1. The exchange withdrew its Greek MiCA application and will halt onboarding of new EU users from that date.
Notices shared on social media said existing customers can still withdraw assets afterward. Binance recorded over $400 million in net outflows during the week beginning June 22, including $1.96 billion on Wednesday, per DefiLlama data—though such flows are not unusual for the exchange.
Co-founder Yi He said Friday that Europe remains important and Binance is committed to pursuing a MiCA license. Rival OKX, MiCA-authorized in Malta since January 2025, recorded $285.5 million in net inflows over the same period.
What happens next for crypto firms in Europe?
The industry has a consultation window ending September 28 to lobby for changes to the EBA's penalty methodology. Executives must navigate strict compliance long before final fining guidelines are formalized.
Brussels is positioning the EU as a global standard-setter for digital finance. For issuers and exchanges, the choice is clear: comply with MiCA, accept the new penalty exposure, or exit the bloc.