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The European Banking Authority laid out a proposed penalty framework on Friday that can strip non-compliant significant token issuers of up to 12.5% of their annual revenue.<\/p>\n
The European Banking Authority on Friday unveiled a sweeping framework to penalize cryptocurrency issuers that violate the European Union\u2019s digital-asset laws, signaling a tougher enforcement stance as the trade bloc finalizes its historic regulatory architecture.<\/p>\n
The consultation paper published June 26 establishes a standardized playbook for hitting non-compliant issuers of what the EBA considers \u201csignificant\u201d tokens<\/a> with potentially multimillion-euro penalties. Under the proposal, the Paris-based watchdog will deploy a strict two-step process to determine fines, assessing the baseline severity of an infraction before factoring in aggravating or mitigating behavior.<\/p>\n The move represents the sharpening of teeth for the EU\u2019s landmark Markets in Crypto-Assets (MiCA) regulation. Introduced to bring order to a historically freewheeling sector, MiCA is the world’s first comprehensive regulatory regime for digital assets, forcing token issuers and crypto service providers to operate with bank-like compliance, consumer protections and capital reserves if they want access to the single European market.<\/p>\n