European Banking Authority pushes for stricter crypto fines under MiCA rules

The European Banking Authority (EBA) has put forward a new proposal aimed at creating a harmonized system for financial penalties across the European Union. Under this framework, issuers of major crypto assets that violate EU digital asset regulations could face multimillion-euro fines.

Published on June 26, the consultation document introduces a structured two-stage approach for determining penalties under the Markets in Crypto-Assets (MiCA) regulation. The process begins with an assessment of the severity of the infringement, followed by adjustments based on aggravating or mitigating factors specific to each case.

Penalty Structure: Turnover-Based Fines and Profit Multipliers

According to the proposal, fines could reach significant levels depending on the type of asset issuer involved. Issuers of significant asset-referenced tokens may be fined up to 12.5% of annual turnover, while issuers of significant e-money tokens could face penalties of up to 10% of turnover.

In addition, the framework allows regulators to impose fines equivalent to twice the profits gained from non-compliance, where such calculations are applicable. This dual approach is intended to ensure that violations are not financially beneficial for market participants.

Strengthening MiCA Enforcement Across the EU

The proposed penalty system is part of the broader enforcement architecture supporting MiCA, which establishes a unified regulatory regime for crypto assets across EU member states. The regulation requires issuers and crypto service providers to comply with licensing rules, capital requirements, consumer protection standards, and ongoing operational obligations before offering services throughout the bloc.

The EBA emphasized that the objective of the framework is to ensure consistency in how financial sanctions are calculated and applied across different jurisdictions within the EU, reducing regulatory fragmentation and improving supervisory clarity.

Timing Ahead of MiCA Licensing Deadline

The consultation was released just days before the July 1 MiCA licensing deadline, after which crypto companies must secure authorization from national regulators to continue operating legally within the European Union or to market stablecoin-related services.

Firms that fail to obtain approval risk enforcement actions if they continue operations, particularly in cases involving unauthorized public offerings, compliance failures, or breaches of regulatory obligations outlined under the proposed penalty system.

The consultation window will remain open until September 28, allowing industry stakeholders to provide feedback before the EBA finalizes the methodology.

Industry Response

Some major crypto exchanges have already begun adapting their European operations in response to MiCA requirements. Binance, for example, has scaled back parts of its EU presence after not securing authorization in time. The exchange previously withdrew its MiCA application in Greece and indicated plans to pursue licensing through alternative EU jurisdictions.

User notices circulating on social media also suggest that Binance will halt onboarding of new European customers while limiting certain services for existing users starting July 1. However, users will still be able to withdraw their digital assets after these restrictions take effect.

Meanwhile, competing platforms such as Coinbase and OKX have taken a different approach by actively promoting their MiCA-compliant services. Coinbase has launched marketing campaigns in several European countries, offering incentives such as transfer bonuses for users moving assets, while OKX has introduced deposit rewards and welcome incentives for eligible customers within the European Economic Area.

Broader Regulatory Impact

The introduction of a standardized penalty framework signals a clear shift toward stricter and more centralized enforcement of crypto regulations within the European Union. While MiCA aims to provide legal clarity and unify rules across member states, the growing emphasis on heavy financial penalties suggests that compliance will become a key competitive factor for crypto firms operating in Europe.

In the longer term, this regulatory tightening may accelerate consolidation in the industry, favoring exchanges and issuers capable of meeting high compliance costs while potentially pushing smaller players out of the market or into niche jurisdictions.