EU proposes fines of up to 12.5% of annual revenue for MiCA violations
The European Banking Authority (EBA) has proposed a new framework for calculating penalties against major digital asset issuers that violate MiCA requirements. Under the proposal, fines could reach 12.5% of a company's annual revenue.
The EBA published the consultation paper on June 26, 2026. It outlines a two-step approach to determining penalties: regulators would first assess the baseline severity of a violation before adjusting the fine based on aggravating or mitigating circumstances.
The proposal applies to significant issuers of asset-referenced tokens (ARTs) and electronic money tokens (EMTs). Maximum penalties could reach 12.5% of annual revenue for ART issuers and 10% for EMT issuers.
Alternatively, regulators could impose a fine equal to twice the profit gained from the violation.
Proposed rules strengthen MiCA enforcement
The draft framework is part of the EU's broader effort to strengthen enforcement under MiCA, which establishes a unified regulatory regime for crypto companies operating across the bloc.MiCA requires token issuers and crypto service providers to comply with rules covering disclosures, consumer protection, corporate governance, and reserve management.
The proposed penalty framework is intended to deter companies from operating without the required authorization or violating EU crypto regulations. European authorities expect MiCA to improve cryptocurrency market transparency, strengthen investor protection, and create a consistent regulatory environment across the bloc.
July 1 licensing deadline approaches
The proposal comes just days before a key deadline for crypto firms operating in the European Union. Beginning July 1, companies must obtain licenses from national regulators to continue offering crypto services or promoting stablecoins across the bloc.Firms that fail to secure authorization could face operational restrictions or risk falling under the EBA's proposed penalty regime.
Against that backdrop, Binance has already notified users in the EU that access to certain services will be restricted after the exchange failed to obtain a MiCA license before the deadline. According to DefiLlama, the announcement triggered significant net outflows from the platform.
Earlier, crypto exchange Kanga obtained a Class 3 MiCA license in Latvia, allowing it to provide regulated crypto services throughout the European Union.
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