On June 26, the European Banking Authority (EBA) published a consultation paper proposing a standardized penalty framework for crypto-asset issuers that violate MiCA (the Markets in Crypto-Assets Regulation, EUR-Lex Regulation 2023/1114); this was reported by the Tokenpost briefing. Under the proposal, issuers of significant asset-referenced tokens (significant ART) face fines of up to 12.5% of annual revenue, or twice the proceeds derived from the infringement, in cases of violation; significant e-money tokens (significant EMT — the category pegged 1:1 to fiat and commonly lumped together as “stablecoins”) face a fine cap of 10% of annual revenue. The EBA proposes a two-stage process for determining penalties: first assessing the severity of the infringement, then applying aggravating or mitigating factors to calculate the final amount. This document is currently a consultation draft; the final terms will be whatever version the EBA subsequently publishes on its official publications page.
Editorial take: what this means for USDT card holders
Let’s be clear about scope first: this document governs “issuers,” not “cards.” It targets the entities that issue EMTs / ARTs — that is, the companies behind USDC, EURC, and any future stablecoin that obtains an MiCA license to circulate in the EU. Your USDT virtual card, at its core, works by loading ₮ into an issuer’s account and converting it into fiat for spending; the card itself is regulated under EMI / payment licensing regimes, not under MiCA’s token-issuance provisions.
But the transmission path is real. USDT has not yet obtained MiCA-compliant status in the EU, which means mainstream EU-licensed platforms are already scaling back support for it. If this EBA penalty framework is finalized, eurozone issuers will likely become more conservative about whether to accept USDT deposits — not out of fear of the fine itself, but out of fear of being implicated for “providing a channel for a non-compliant token.”
- Directly affected: cards built on an EU IBAN / EMI license, such as Wirex. The deposit currencies and eurozone rails for this type of card are most likely to be adjusted going forward.
- Indirectly related: exchange-affiliated cards such as Bybit Card, whose European entities must interface with MiCA; USDT rails in the eurozone may gradually give way to USDC / EURC.
- Least affected: cards focused on Asia-Pacific rails. The Asia Elite variant covered in the MPCard review runs on Asia-Pacific BINs and an Asia-Pacific account system, and the EU penalty framework does not directly touch its card-issuing logic — though if you use it for eurozone spending, merchant-side risk controls still apply.
Timeline expectations: within 7 days, expect no card changes at all — this is only a consultation draft. Within 30 days, watch whether issuers quietly adjust eurozone USDT support notices on their terms pages. Within 90 days, once the consultation period closes, substantive action from EU-licensed platforms may begin to appear.
Historical comparison: how is this “softer” than the previous three episodes
It helps to place this within MiCA’s enforcement timeline. MiCA’s stablecoin provisions (Title III / IV) have applied since June 2024, and the crypto-asset service provisions since late December 2024 — this is the “regulation takes effect” layer; see the full EUR-Lex text for specifics. Taking effect only means “the rules start to apply” — how much a violation costs and how it’s calculated has remained a blank space. This EBA paper is what fills that gap — moving from “having a law” to “having a penalty schedule.”
It’s worth comparing this to USDC’s brief depeg in March 2023: back then, USDC fell to roughly $0.87 due to Silicon Valley Bank exposure (the historical price range can be verified on CoinGecko’s USDC page), which was a “market crisis of confidence in reserves” that self-corrected as funds flowed back in. The MiCA penalty framework, by contrast, is “regulatory cost-pricing for issuers” — institutional and long-term in nature. The former was a passing storm; the latter is a new foundation.
Compared with the 2024 SEC vs. Coinbase lawsuit in the US, the EU’s path is more “administrative”: rather than litigating case by case in court, it writes the penalty formula into a regulatory document in advance. For issuers, EU compliance costs become more predictable, but also more rigid — which is precisely the point of the EBA using “percentage of annual revenue” rather than a fixed amount.
Regulatory boundaries: where the line actually sits right now
The current eurozone boundary looks like this:
- Clearly permitted: MiCA-licensed EMTs (such as already-compliant euro stablecoins, or the USDC EU entity currently applying for authorization).
- Gray zone: stablecoins like USDT that have not obtained MiCA status — not explicitly banned, but licensed platforms are proactively scaling back support as a risk-avoidance measure, resulting in a “de facto exit.”
- Clearly subject to penalties: issuers that have obtained significant-token designation but violate reserve, disclosure, or governance requirements.
For user-level compliance questions, eurozone readers can consult the EU compliance guide to understand the boundaries of deposits and holdings under MiCA. Readers planning to use a USDT card in the UK follow a different rule path and should refer separately to the UK compliance guide.
Milestones to watch next
- EBA consultation deadline: the consultation draft has a feedback window, after which the final standard will be issued. The specific date will be announced on the EBA publications page.
- Circle’s EU entity moves: whether USDC / EURC expand their licensed eurozone coverage will determine how many “MiCA-compliant stablecoin” options are available to EU cards.
- Terms updates from eurozone exchange cards: whether Bybit, Wirex, and others adjust eurozone USDT deposit support is the most direct user-facing signal.
- First applied case: the first issuer actually cited for a fine once the framework takes effect will become the industry’s practical yardstick.
Editorial recommendations
- Users holding Asia-Pacific-rail cards (such as MPCard Asia Elite) for Asia-Pacific spending: no action needed — this document does not touch your card’s issuance logic.
- Users relying on eurozone IBAN cards (such as Wirex): over the next 30–90 days, watch the issuer’s terms page for eurozone USDT support notices, and confirm in advance whether you need to shift to USDC deposits.
- Users comparing available EU cards: add “does it support an MiCA-compliant stablecoin” as a selection criterion — start with the 2026 Top 5 and the guide for EU residents.
- What not to do: don’t panic-convert all your USDT into a single euro stablecoin just because of this consultation draft — a consultation draft is not final terms, and issuers’ actual moves haven’t happened yet; a hasty conversion only adds an extra exchange cost.
Regulators writing the fine as a formula hits hardest not the users, but the issuers “hoping to stay in the gray zone collecting channel fees.” Checking which rail your own card runs on against the eurozone compliance boundary is more useful than rushing to rebalance your holdings.