EU banking watchdog proposes fines of up to 12.5% of revenue for crypto rule breakers

The European Banking Authority published a penalty framework that can fine non-compliant stablecoin issuers up to 12.5% of annual revenue, as the EU's MiCA rules take full effect on July 1.

• The EBA's consultation paper sets a two-step process to determine fines for 'significant' token issuers violating MiCA rules.
• Penalties can reach 12.5% of annual turnover for asset-referenced tokens and 10% for e-money tokens.
• The framework arrives days before the July 1 MiCA deadline, when crypto firms must hold formal licenses to operate in the EU.
• Binance has already notified EU users of service restrictions after failing to secure MiCA authorization before the deadline.

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