European Banking Authority releases penalty framework for MiCA compliant issuers
The European Banking Authority has released a standardized penalty framework for cryptocurrency issuers who violate MiCA regulations. Major token non compliant issuers will face fines of up to 12.5% of their annual income or twice the profits earned from the violation. The maximum fine for major electronic currency tokens is 10% of their annual income. The European Banking Authority adopts a two-step process to determine the amount of fines, which includes aggravating or mitigating factors after assessing the severity of the violation. The framework was released just before the deadline of July 1st, and cryptocurrency companies need to obtain official licenses from regulatory agencies in various countries to operate within the EU-27. Unlicensed companies face the risk of suspension.