EBA Proposes Penalty Framework: Up to 12.5% of Annual Turnover
The European Banking Authority (EBA) on Friday unveiled a proposed penalty framework that empowers regulators to impose fines of up to 12.5% of the annual turnover on non-compliant issuers of significant tokens. This marks the first concrete quantitative penalty benchmark for large token issuers following the entry into force of landmark EU laws such as the Markets in Crypto-Assets Regulation (MiCA). Once adopted, the framework will provide a uniform basis for cross-border penalties across member states and substantially raise the cost of non-compliance.
Under the current proposal, the framework primarily targets issuers of "significant" asset-referenced tokens (ARTs) and e-money tokens (EMTs). The EBA emphasized that the fine ratio will be adjusted based on the severity, duration, and the issuer's level of cooperation with regulators. In addition, the EBA plans to introduce a tiered penalty calculation method linked to the issuer's revenue, ensuring that punitive measures are commensurate with market impact.
The move signals a hardening enforcement posture in the EU after years of regulatory development, and is expected to pressure major stablecoin issuers and other large crypto asset operators to strengthen their compliance frameworks immediately. Industry observers note that the 12.5% ceiling aligns with penalties seen in traditional finance, reflecting the EU's intent to treat significant crypto assets with the same seriousness as systemic financial instruments.