EU Banking Watchdog Proposes Revenue-Based Fines for Major Token Issuers
The European Banking Authority has outlined a penalty framework that could cost non-compliant significant token issuers up to 12.5% of their annual revenue.
What happened?
The European Banking Authority has outlined a penalty framework that could cost non-compliant significant token issuers up to 12.5% of their annual revenue.
Why it matters
The framework focuses on issuers classified as significant, placing greater regulatory pressure on prominent businesses in the token market. Companies falling within that category could therefore face fines tied directly to the scale of their operations.
The European Banking Authority on Friday presented a proposed penalty framework for significant token issuers that fail to comply with applicable rules. Under the plan, penalties could reach as much as 12.5% of an issuer’s annual revenue.
The revenue-based ceiling makes the potential cost of non-compliance substantial for large issuers. It also signals that European regulators intend to back the region’s landmark crypto rules with meaningful financial consequences.
The framework focuses on issuers classified as significant, placing greater regulatory pressure on prominent businesses in the token market. Companies falling within that category could therefore face fines tied directly to the scale of their operations.
The proposal adds detail to how the European Union’s crypto regulatory regime may be enforced in practice. For the industry, it provides a clearer indication of the financial exposure that can accompany breaches of the rules.