The European Banking Authority (EBA) published a draft penalty framework last Friday under MiCA (the Markets in Crypto-Assets Regulation). The detail drawing the most attention: non-compliant “significant token issuers” could face fines of up to 12.5% of annual revenue. The EBA is the core body within the MiCA regime responsible for supervising issuers of asset-referenced tokens (ART) and e-money tokens (EMT — that is, most fiat-pegged stablecoins) classified as “significant.” This marks MiCA’s shift from “legislation on paper” to “enforcement in practice” — the rules are no longer just a compliance checklist, but now carry a real financial penalty.
Editorial take: what this means for euro-area stablecoin card users
The short version first: this news will not immediately change the usability of the card in your hand, but it is widening the gap between “compliant stablecoins” and “gray-zone stablecoins.”
MiCA’s core requirement for stablecoins is clear — issuing an EMT to the public within the EU requires authorization as an electronic money institution (EMI) in an EU member state. Circle’s USDC and EURC have already completed this process, while Tether’s USDT still has not obtained MiCA authorization. The EBA’s penalty framework quantifies the cost of non-compliance at up to 12.5% of annual revenue, effectively putting pressure on every issuer still sitting on the sidelines.
The concrete impact on cardholders falls into two categories:
- Users funding cards with USDC/EURC in the euro area (such as certain euro-region configurations of Wirex and Crypto.com Visa): the compliance foundation is more solid here, and there is little to worry about in the short-to-medium term.
- Users relying on USDT balances: over the past year, exchanges and card-issuing rails in the euro area have already been quietly “soft-delisting” USDT — not necessarily banning holdings outright, but prioritizing USDC deposits and restricting USDT trading pairs for new euro-area users. With the EBA now putting real fines behind non-compliance, platform compliance teams will only grow more conservative.
Expected timeline: within 7 days, no card will be shut down; within 30 days, watch whether the platforms you use update their euro-area stablecoin deposit policies; within 90 days, if you rely long-term on USDT to fund euro-area subscriptions or spending, consider moving part of your balance to USDC ahead of time to avoid exchange-rate and timing costs from a forced migration later. Asia-Pacific-route users are less affected — this is one reason MpCard’s Asia Elite variant centers its operations on Asia-Pacific BINs rather than the euro area.
Historical comparison: how this differs from 2023
Placing this within a timeline makes it clearer.
- The 2023 USDC brief depeg: that was a market-level crisis of confidence (triggered by Silicon Valley Bank contagion risk) — a problem on the issuer’s asset side, resolved within days once the banking backstop kicked in.
- The phased rollout of MiCA in 2024–2025: stablecoin provisions took effect ahead of market-structure provisions. At the time, the market worried whether USDT would be delisted outright; what actually happened was a gradual adjustment at the exchange level, not a blanket ban.
- This time (the 2026 EBA penalty framework): the nature is entirely different — this is the enforcement mechanism taking shape. The previous two events were about “whether regulators would act”; this one is about “how much they will fine, and how.”
What stays the same: in every instance, the ultimate beneficiaries have been the already-authorized compliant stablecoins (USDC / EURC). What’s different this time: the penalty framework turns non-compliance from a reputational issue into a calculable financial risk — 12.5% of annual revenue is a figure no large issuer can ignore.
Regulatory and compliance boundaries
Three lines need to be kept distinct:
- Clearly permitted: EMTs with EMI authorization (USDC, EURC) being issued and circulated to the public within the EU.
- Gray zone: stablecoins without MiCA authorization such as USDT — personal holdings and peer-to-peer transfers generally do not constitute “issuance,” but exchange market-making and active provision to euro-area retail users are being tightened rapidly.
- Clearly penalized: issuers classified as “significant” that fail to meet reserve, disclosure, or governance requirements, who now face the EBA’s framework of fines up to 12.5% of annual revenue.
For more on how the EU’s overall framework affects card issuance and deposits, see our EU compliance guide. Detailed rules under this framework will be published later as technical standards (RTS/ITS) — keep an eye on EBA official announcements.
Key milestones to watch next
- The consultation period for the draft framework: EBA drafts typically go through a public consultation window, and the final text may differ from the draft — watch whether the 12.5% cap holds.
- The first enforcement target: whichever “significant issuer” is named first will serve as a bellwether, particularly whether regulators go after indirect circulation channels for unauthorized stablecoins.
- Euro-area exchange deposit policies: watch within 30 days whether any platforms further tighten USDT deposits or trading pairs in the euro area.
- Official responses from Circle and Tether: watch for any new compliance progress or EU authorization applications.
Editorial recommendations
- Users holding USDC/EURC-funded euro-area cards: no action needed — your compliance footing is only getting more solid.
- Users relying on USDT long-term to fund euro-area subscriptions or spending: no need to panic, but watch platform announcements over the next 90 days and consider migrating part of your balance to USDC to reduce the risk of a forced, disadvantageous switch later. See Best Choices for EU Residents to compare compliant routes.
- Users planning to apply for a new euro-area stablecoin card: prioritize products that support USDC/EURC deposits; if your primary use case is in Asia-Pacific, the Asia-Pacific route covered in the MpCard review is least affected by this round of EU penalties.
- All users: this news is not a signal that “USDT is about to be banned” — it’s a signal that “EU compliance stratification is solidifying.” Treat it as long-term reference for asset allocation, not a trigger for panic.
Fees, limits, and authorization status should be verified against the official pages of each issuer and regulator. This article is based on publicly available information from the EBA and Cointelegraph, and does not constitute investment advice.