The European Banking Authority (EBA) has unveiled a proposal that could significantly strengthen enforcement under the European Union’s Markets in Crypto-Assets (MiCA) regulation.
Under the proposed framework, issuers of major crypto tokens that violate MiCA rules could face fines of up to 12.5% of their annual turnover, marking one of the toughest penalty structures introduced for the digital asset industry.
The consultation comes just days before the July 1 MiCA licensing deadline, when crypto companies must obtain authorization to continue operating across the European Union.
EBA Proposes Standardized Penalty Framework
On June 26, the European Banking Authority published a consultation paper outlining a new methodology for calculating financial penalties under MiCA.
The proposal introduces a two-step process designed to ensure regulators apply sanctions consistently across all EU member states.
Under the framework, regulators would first evaluate the seriousness of each violation before adjusting the final penalty based on aggravating or mitigating circumstances.
The goal is to establish a transparent and uniform approach to enforcement throughout the European Union.
Multi-Million Euro Fines Could Apply
If adopted, the proposal would allow regulators to impose substantial financial penalties on companies that fail to comply with MiCA.
The consultation outlines maximum fines of:
- Up to 12.5% of annual turnover for issuers of significant asset-referenced tokens (ARTs).
- Up to 10% of annual turnover for issuers of significant electronic money tokens (EMTs).
In addition, regulators could impose penalties worth up to twice the profits gained from a violation where appropriate.
These measures are intended to discourage non-compliance while ensuring penalties remain proportionate to the severity of each infringement.
MiCA Creates a Single Crypto Rulebook
The proposed penalty framework forms part of the broader enforcement system established under MiCA.
The regulation introduces a unified legal framework governing cryptocurrency businesses throughout the European Union.
Under MiCA, crypto companies must satisfy requirements related to:
- Licensing
- Capital adequacy
- Consumer protection
- Operational governance
- Compliance procedures
- Stablecoin oversight
Once authorized in one EU member state, companies can generally offer services throughout the European Economic Area under a passporting system.
The EBA believes consistent penalties are necessary to ensure these rules are enforced fairly across every jurisdiction.
July 1 Deadline Approaches
The consultation paper arrives only days before one of MiCA’s most important milestones.
Beginning July 1, cryptocurrency firms operating within the European Union must hold authorization from a national regulator to continue offering services or marketing eligible crypto assets across the region.
Companies that fail to obtain approval could face enforcement action if they continue operating without authorization.
Potential violations covered under the proposed framework include:
- Operating without a MiCA license
- Unauthorized public disclosures
- Organizational compliance failures
- Violations involving significant crypto tokens
The consultation period will remain open until September 28, allowing industry participants to submit comments before the EBA finalizes the methodology.
Binance Begins Restricting European Operations
The approaching deadline has already begun affecting several major cryptocurrency exchanges.
Binance recently started limiting parts of its European business after failing to secure MiCA authorization before the transition period expires.
The exchange withdrew its MiCA application in Greece and announced plans to pursue authorization through another European Union member state.
According to notices shared by users, Binance will:
- Stop onboarding new EU customers
- Restrict selected services for existing users
- Continue allowing customers to withdraw digital assets
The company has stated that it remains committed to obtaining regulatory approval while minimizing disruption for European users.
Licensed Exchanges Compete for Market Share
As Binance scales back some of its European operations, competing exchanges have moved quickly to attract users.
Several MiCA-authorized platforms have launched promotional campaigns aimed at customers transferring assets before the new rules take full effect.
Among them:
- Coinbase introduced a 5% transfer bonus for eligible European users moving assets before July 13.
- OKX launched welcome incentives and deposit matching of up to 8% for qualifying customers across the European Economic Area.
The promotions highlight how regulatory compliance is becoming a competitive advantage as Europe’s crypto market transitions into the MiCA era.
Why the Proposal Matters
The EBA’s proposed framework signals that European regulators intend to enforce MiCA aggressively rather than treating it as a symbolic regulatory reform.
For crypto companies, the potential consequences of non-compliance are substantial.
Large financial penalties tied to annual turnover could have a significant impact on businesses that fail to meet regulatory standards.
At the same time, standardized enforcement should provide greater legal certainty for companies that successfully obtain authorization and comply with MiCA requirements.
The Bottom Line
The European Banking Authority’s proposed penalty framework represents another major step in implementing the European Union’s comprehensive MiCA regulation.
If approved, issuers of significant crypto tokens could face fines of up to 12.5% of annual turnover, along with additional penalties linked to profits earned through regulatory violations.
The proposal arrives just ahead of the July 1 MiCA licensing deadline, a pivotal moment that will reshape how cryptocurrency businesses operate across Europe.
As regulators tighten oversight and licensed exchanges compete for market share, MiCA is rapidly transforming from a new regulatory framework into the foundation of the European Union’s digital asset industry.
Disclaimer: This article is for informational purposes only and should not be considered legal, financial, or investment advice. Regulatory proposals may change before final implementation, and businesses should consult official guidance when assessing compliance obligations.
