European Banking Authority publishes penalty framework for non-compliant crypto issuers, MiCA full enforcement imminent

June 29 news, the European Banking Authority (EBA) released a consultation paper on June 26 proposing a standardized penalty framework for crypto asset issuers that violate MiCA regulations. According to the proposal, non-compliant issuers deemed significant tokens will face fines of up to 12.5% of annual income or twice the profits from the violation, while the cap for significant e-money tokens is 10% of annual income. The EBA will adopt a strict two-step process to determine the fine amount, incorporating aggravating or mitigating factors after assessing the basic severity of the violation. This move marks the entry of EU MiCA regulation into the substantive enforcement phase. The release of the framework comes on the eve of the key July 1 deadline, when crypto companies must obtain formal licenses from national regulators to legally operate in the 27 EU countries, and unlicensed companies will face the risk of suspension.