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The European Banking Authority has detailed a proposed penalty framework that can strip non-compliant significant token issuers of up to 12.5% of their annual revenue, putting a concrete financial ceiling on the enforcement powers embedded in the European Union's landmark crypto laws.
The EBA published the framework on Friday as the bloc's new crypto legislation moves from statute into active supervisory practice.
A Revenue-Linked Penalty Ceiling The central mechanism in the EBA's proposal ties maximum fines to annual revenue rather than a fixed monetary amount.
For the category of issuers the EU's new regime classifies as significant — those subject to elevated regulatory oversight — a 12.5% revenue-based ceiling means larger operations face proportionally larger maximum penalties in absolute terms.
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