Art. 131 Fines | MiCA regulation | MiCA

This article sets out EBA's power to impose fines on issuers of significant asset-referenced tokens and significant e-money tokens — including members of their management bodies — where infringements listed in Annexes V and VI have been committed, either intentionally or negligently.

It flows directly from Article 134, which governs the investigatory process that precedes any such fine decision.

The article then provides a detailed list of factors EBA must weigh when sizing a fine, covering everything from the duration and frequency of the breach, to its impact on token holders, to the issuer's level of cooperation.

It closes by capping maximum fines at different percentages of annual turnover depending on the type of token involved.

Important points:

EBA is required to impose fines on issuers of significant asset-referenced tokens or significant e-money tokens (and their management body members) found to have committed infringements intentionally or negligently following the process in Article 134.
The maximum fine for issuers of significant asset-referenced tokens is 12.5% of annual turnover in the preceding business year, or twice the profits gained or losses avoided; for issuers of significant e-money tokens the cap is 10% on the same basis.
Issuers of significant tokens should be aware that their cooperation with EBA, prior infringement history, and any remedial steps taken after an infringement are all factors EBA must consider when determining the fine amount.

1. EBA shall adopt a decision imposing a fine in accordance with paragraph 3 or 4 of this Article where, in accordance with Article 134(8), it finds that:
  1. an issuer of a significant asset-referenced token or a member of its management body has, intentionally or negligently, committed an infringement as listed in Annex V;
  2. an issuer of a significant e-money token or a member of its management body has, intentionally or negligently, committed an infringement as listed in Annex VI.
2. An infringement shall be considered to have been committed intentionally if EBA finds objective factors which demonstrate that such an issuer or a member of its management body acted deliberately to commit the infringement.
1. When adopting a decision as referred to in paragraph 1, EBA shall take into account the nature and seriousness of the infringement, having regard to:
  1. the duration and frequency of the infringement;
  2. whether financial crime has been occasioned, facilitated or is otherwise attributable to the infringement;
  3. whether the infringement has revealed serious or systemic weaknesses in the issuer of the significant asset-referenced token’s or in the issuer of the significant e-money token’s procedures, policies and risk management measures;
  4. whether the infringement has been committed intentionally or negligently;
  5. the degree of responsibility of the issuer of the significant asset-referenced token or the issuer of the significant e-money token responsible for the infringement;
  6. the financial strength of the issuer of the significant asset-referenced token, or of the issuer of the significant e-money token, responsible for the infringement, as indicated by the total turnover of the responsible legal person or the annual income and net assets of the responsible natural person;
  7. the impact of the infringement on the interests of holders of significant asset-referenced tokens or significant e-money tokens;
  8. the importance of the profits gained, losses avoided by the issuer of the significant asset-referenced token or the significant e-money token responsible for the infringement or the losses for third parties caused by the infringement, insofar as they can be determined;
  9. the level of cooperation of the issuer of the significant asset-referenced token or of the issuer of the significant e-money token responsible for the infringement with EBA, without prejudice to the need to ensure disgorgement of profits gained or losses avoided by that person;
  10. previous infringements by the issuer of the significant asset-referenced token or by the issuer of the significant e-money token responsible for the infringement;
  11. measures taken by the issuer of the significant asset-referenced token or by the issuer of the significant e-money token after the infringement to prevent the repetition of such an infringement.
1. For issuers of significant asset-referenced tokens, the maximum amount of the fine referred to in paragraph 1 shall be up to 12,5 % of its annual turnover in the preceding business year, or twice the amount or profits gained or losses avoided because of the infringement where those can be determined.
1. For issuers of significant e-money tokens, the maximum amount of the fine referred to in paragraph 1 shall be up to 10 % of its annual turnover in the preceding business year, or twice the amount or profits gained or losses avoided because of the infringement where those can be determined.

Article 131 Fines

Relevant recitals