EBA Seeks Regulation of Crypto Lending under MiCA Framework
The European Banking Authority (EBA) has called for crypto lending to be brought under the EU's Markets in Crypto-Assets (MiCA) framework, saying it should be regulated alongside other services. In a response to the European Commission's targeted consultation on MiCA, the EBA recommended that crypto borrowing and lending be included in the list of services subject to regulation.
The regulator suggested conducting a cost-benefit analysis of legislative changes that could add intermediating crypto borrowing and lending to the MiCA framework. This could result in specific compliance requirements and oversight activity for crypto firms that facilitate access to decentralized finance (DeFi) lending protocols.
The EBA outlined potential measures, including suitability tests for users, leverage limits, and additional disclosure requirements. It also raised the possibility of restricting access to lending involving asset-referenced or e-money tokens that require MiCA authorization and introducing a certification regime for DeFi lending protocols.