EBA proposes fines of up to 12.5% of annual turnover for MiCA breaches ahead of July 1 deadline

The European Banking Authority published a consultation paper on June 26 proposing a standardized penalty methodology under MiCA that could expose issuers of significant crypto tokens to fines of up to 12.5% of their annual turnover for regulatory breaches.

Under the proposal, issuers of significant asset-referenced tokens could face fines of up to 12.5% of their annual turnover, while issuers of significant e-money tokens could be penalized up to 10% of annual turnover. In cases where firms profit from regulatory breaches, authorities would also have the power to impose fines worth up to twice the gains generated by the infringement.

The proposal arrives just days before the European Union’s July 1 licensing deadline, a milestone that requires crypto asset service providers and eligible token issuers to obtain authorization from a national regulator before continuing operations across the bloc.

EBA aims for consistent enforcement across the bloc

The proposed MiCA penalty framework is designed to eliminate inconsistencies in how regulators calculate sanctions throughout the European Union.

According to the consultation paper, supervisors would follow a two-step process when determining penalties. Regulators would first evaluate the seriousness of a breach before adjusting the final amount based on aggravating or mitigating circumstances, creating a more predictable and transparent enforcement model.

The EBA said the methodology is intended to ensure national supervisory authorities apply financial penalties uniformly once the framework takes effect, reinforcing MiCA’s objective of establishing a single regulatory standard for digital assets across all EU member states.

The broader MiCA regulation already requires crypto firms to satisfy strict licensing, governance, capital, consumer protection and compliance obligations before offering services throughout the single market. The proposed penalties represent another step in strengthening regulatory oversight as the industry transitions from fragmented national rules to a unified European framework.

Industry faces July 1 licensing deadline

The timing of the consultation has intensified attention across Europe’s crypto industry.

From July 1, firms operating without MiCA authorization risk enforcement measures if they continue offering regulated services or commit violations covered under the proposed MiCA penalty framework, including unauthorized public disclosures and organizational compliance failures. The consultation will remain open until Sept. 28, giving industry participants an opportunity to provide feedback before the methodology is finalized.

The regulatory deadline has prompted authorities to stress that there will be little room for flexibility.

“We will grant no extensions or waivers,” said Carlos San Basilio, chair of Spain’s securities regulator, emphasizing that firms must comply with the MiCA timetable. His comments underscore the European Union’s determination to enforce the new regime without delay.

The tougher stance reflects the EU’s broader strategy of creating legal certainty for digital assets while strengthening investor protection and market integrity through harmonized regulation.

Binance scales back as licensed rivals compete

The approaching deadline has already reshaped competition among major cryptocurrency exchanges.

Binance has begun restricting parts of its European business after failing to secure MiCA authorization before the deadline. The company withdrew its licensing application in Greece and has indicated it intends to pursue approval through another EU member state. Exchange notices sent to customers confirmed that new users in the European Union would no longer be onboarded from July 1, while certain services for existing customers would also be restricted. Users will, however, continue to have access to withdraw their digital assets.

Despite the setback, Gillian Lynch, Binance’s Head of Europe and the UK, reaffirmed the company’s commitment to the region.

“Binance is not leaving Europe,” Lynch told Reuters. “We may just have a different pathway to being authorised.”

As Binance scales back, competitors have moved quickly to attract European customers. Coinbase has launched promotional campaigns offering eligible users a 5% transfer bonus for moving digital assets before July 13, while OKX has introduced welcome incentives and deposit-matching promotions for qualifying customers across the European Economic Area.

A defining moment for European crypto regulation

The proposed MiCA penalty framework marks one of the strongest enforcement mechanisms introduced under the EU’s landmark digital asset legislation. By setting out a standardized approach to financial sanctions before the licensing deadline takes full effect, European regulators are sending a clear message that compliance will be central to operating within the world’s first comprehensive crypto regulatory regime.

If adopted after the consultation period, the MiCA penalty framework will give supervisory authorities a uniform playbook for imposing multimillion-euro fines on firms that violate MiCA requirements. Combined with the licensing regime already coming into force, the measures are expected to reshape how crypto businesses structure compliance, governance and risk management across the European Union.

For digital asset companies seeking long-term access to the European market, the MiCA penalty framework is likely to become one of the most consequential regulatory developments of 2026, reinforcing the EU’s ambition to set the global benchmark for responsible crypto oversight.