Key facts
- The European Banking Authority has proposed a penalty framework for crypto issuers violating EU digital-asset laws.
- Non-compliant significant token issuers could face fines up to 12.5% of annual revenue.
- A consultation period for the proposed penalties is open until September 28.
- Binance experienced over $400 million in net outflows in the week before the EU's MiCA deadline.
- Data does not indicate a mass exodus of users from Binance.
- The EU's Markets in Crypto-Assets (MiCA) regulation deadline is approaching.
The European Banking Authority (EBA) has outlined a proposed penalty framework for cryptocurrency issuers that fail to comply with the EU's landmark digital-asset laws. Under this framework, significant token issuers found to be in violation could face substantial fines, potentially reaching up to 12.5% of their annual revenue. A public consultation period for these proposed penalties is currently open and will conclude on September 28.
This regulatory development coincides with the looming deadline for the EU's Markets in Crypto-Assets (MiCA) regulation. In the week leading up to this significant regulatory milestone, the cryptocurrency exchange Binance experienced net outflows totaling over $400 million. Despite efforts by rival platforms to attract users amid the evolving regulatory landscape, available data does not suggest a mass exodus of users from Binance.