EU Authority Consults on Fines up to 12.5 Percent of Turnover for Crypto-Token Rule Breaches

The European Banking Authority published a consultation paper on June 26 that sets out a two-step process for calculating fines on issuers of significant tokens that violate EU digital-asset rules. The 14-page document, released by the Paris-based authority, first assesses the baseline severity of an infraction and then adjusts for aggravating or mitigating factors.

Final penalties can reach 12.5 percent of annual turnover for issuers of significant asset-referenced tokens and 10 percent for significant e-money tokens, or twice the profits generated by the violation.

The consultation period runs until September 28. The paper arrives days before the July 1 deadline under the Markets in Crypto-Assets regulation, which requires cryptocurrency firms to obtain formal licenses from national regulators to operate legally in the 27-nation bloc. Firms without licenses after that date risk enforcement actions for unauthorized activities.

Binance withdrew its MiCA license application in Greece and notified EU users that access to key services will be restricted effective July 1. The exchange said users will still be able to withdraw assets after the restrictions begin. ZeroHedge reported that Binance recorded $1.96 billion in daily net outflows on the day of the withdrawal announcement, followed by $2.52 billion and $1.46 billion on the next two days, according to DefiLlama data.

MiCA is described in the source material as the world's first comprehensive regulatory regime for digital assets.