MiCA fines: EBA consults on methodology for crypto-assets

The European Banking Authority (EBA) is responsible for supervising issuers of significant asset-referenced tokens (s-ART) and e-money tokens (s-EMT) under MiCA.

When infringements of MiCA requirements are identified, the EBA can impose fines under Article 131 of the regulation.

MiCA establishes maximum amounts for these fines, but the precise amount is determined on a case-by-case basis.

To ensure a consistent and transparent approach, the EBA has developed a draft methodology.

This framework is inspired by existing practices for similar fines in other EU and national regulatory contexts, ensuring a harmonized approach to enforcement in the evolving crypto-asset market.

The proposed methodology consists of two main steps.

The first step involves establishing a basic amount for the fine, which takes into account the nature and seriousness of the infringement.

MiCA sets maximum fines at 12.5 percent of annual turnover for s-ART issuers and 10 percent for s-EMT issuers, or twice the profits gained or losses avoided.

The EBA's draft groups potential MiCA infringements into three severity categories: conflicts of interest/operational requirements, public disclosure/transparency, and obstacles to supervisory activities.

The second step then adjusts this basic amount by incorporating aggravating and mitigating factors specific to the individual case, ensuring proportionality.