EBA Proposes Fines Up to 12.5% of Annual Revenue for Non-Compliant Crypto Issuers

The European Banking Authority (EBA) has published a draft framework that could impose fines of up to 12.5% of annual revenue on cryptocurrency issuers that fail to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulation. The proposal, first reported by Cointelegraph, marks a significant escalation in the EU’s enforcement approach as the regulatory bloc moves beyond initial implementation phases.

Penalty Structure Under the Draft Framework

Under the EBA’s proposed rules, issuers of significant Asset-Referenced Tokens (ARTs) — digital assets designed to maintain a stable value by referencing multiple fiat currencies or commodities — could face penalties of up to 12.5% of their annual revenue. Issuers of significant E-Money Tokens (EMTs), which are electronic substitutes for fiat currency, could be fined up to 10% of their annual revenue for non-compliance.

The tiered penalty structure reflects the EBA’s assessment of the systemic risk posed by different types of stablecoins. ARTs, which often have broader market impact due to their multi-asset backing, face the higher threshold. The framework establishes clear criteria for determining violations, including failure to meet reserve requirements, inadequate disclosure, and breaches of operational resilience standards.

Timeline and Industry Response

The EBA has opened a public consultation period of approximately three months, with feedback accepted until September 28. This gives industry participants, legal experts, and consumer advocacy groups time to submit comments on the proposed penalty framework. The temporary grace period for existing crypto asset service providers operating under MiCA is set to expire on July 1, meaning firms that have not yet achieved full compliance face imminent regulatory deadlines.

Industry observers interpret the draft as a clear signal that the era of regulatory forbearance is ending. During MiCA’s initial rollout, national competent authorities adopted a measured enforcement approach, allowing firms time to adapt. The EBA’s proposal suggests that phase is concluding, and authorities are now preparing to impose meaningful financial consequences for non-compliance.

Implications for the Crypto Market

For crypto issuers operating in or targeting the European market, the proposed fines represent a material financial risk. A 12.5% penalty on annual revenue could amount to tens of millions of euros for larger stablecoin issuers, fundamentally altering the cost-benefit analysis of regulatory compliance. The framework also introduces reputational risk, as enforcement actions and penalty amounts are likely to be made public.

The EBA’s move aligns with broader global trends toward stricter crypto regulation. The Financial Stability Board and International Monetary Fund have both called for enhanced oversight of stablecoins, citing risks to financial stability and consumer protection. The EU’s MiCA framework, which came into force in June 2023, is among the most comprehensive crypto regulatory regimes globally, and the EBA’s enforcement proposal represents its next logical step.

Market participants should note that the proposed fines apply specifically to issuers of significant tokens — those deemed to have reached a threshold of market capitalization, transaction volume, or user base that warrants heightened regulatory scrutiny. Smaller issuers may face lower penalties under national competent authority discretion, but the framework establishes a clear escalation path for non-compliance.

Conclusion

The EBA’s draft penalty framework represents a pivotal moment in European crypto regulation. By proposing fines of up to 12.5% of annual revenue for non-compliant significant ART issuers, the authority is signaling that regulatory compliance is no longer optional. With the public consultation period open until September 28 and the MiCA grace period expiring on July 1, crypto issuers have a limited window to align their operations with the EU’s regulatory expectations. The final framework, expected later this year, will likely shape enforcement practices across the 27-member bloc for years to come.

FAQs

Q1: What types of crypto tokens are affected by the proposed EBA fines?
The proposed fines apply to issuers of significant Asset-Referenced Tokens (ARTs) and significant E-Money Tokens (EMTs) under the MiCA regulation. ARTs are stablecoins backed by multiple assets, while EMTs are electronic money tokens pegged to a single fiat currency.

Q2: When will the proposed fines take effect?
The EBA has opened a public consultation period ending September 28. After reviewing feedback, the EBA will finalize the framework. The temporary MiCA grace period expires on July 1, meaning issuers should already be working toward full compliance.

Q3: How can crypto issuers submit feedback on the proposed framework?
Industry participants, legal representatives, and other stakeholders can submit comments through the EBA’s official consultation portal before the September 28 deadline. The EBA will consider all submissions before finalizing the penalty framework.