EBA Seeks Regulation of Crypto Lending Services Under MiCA Framework

The European Banking Authority (EBA) is pushing for crypto lending services to be brought under the EU's Markets in Crypto-Assets (MiCA) regulatory framework. The EBA proposed including intermediated crypto lending and support for access to DeFi lending protocols within the regulatory framework.

The authority suggested that the EU conduct a cost-benefit analysis before revising MiCA, as well as considering separate compliance requirements and supervisory measures tailored to the characteristics of these services.

The EBA also proposed a certification regime for DeFi lending protocols, which would allow crypto firms to connect only to protocols that meet standards for stability and regulatory compliance.