Bitpanda Fined €70,000 for MiCAR Breaches

The Financial Market Authority (FMA) of Austria has fined Bitpanda GmbH €70,000 for violating Regulation (EU) 2023/1114 on markets in crypto-assets (MiCAR). The fine relates to three breaches of MiCAR: late filing of a white paper, marketing before publication, and missing mandatory disclosures in the marketing. According to the FMA, the company failed to submit its white paper at least 20 working days before publication, contrary to Article 8(1) and (5) MiCAR. The regulator also found that Bitpanda distributed a marketing communication before the required white paper was published, and that one marketing communication lacked the statement that no authority had reviewed the white paper.

The FMA has concluded that the proceedings were finalized on an accelerated basis under Section 22(2b) of the Financial Market Authority Act. This provision allows a company to waive its right of appeal with binding effect before the decision is issued, provided it knows the operative wording at that point. The reasoning behind the decision may then be omitted, and the penalty becomes final immediately.

The case highlights the importance of complying with MiCAR's requirements for white papers and marketing communications. Under Article 143(1) MiCAR, every token offered to the public in the EU must come with a mandatory document that investors can read before buying. The FMA has emphasized that these obligations exist for the benefit of investors.