Crypto
EU Banking Watchdog Seeks Regulation for Crypto Lending Under MiCA
The European Banking Authority (EBA) has called for the regulation of crypto lending under the European Union's Markets in Crypto-Assets (MiCA) framework.
In a response to the European Commission's consultation on MiCA, the EBA said that crypto borrowing and lending should be brought under regulatory oversight. This includes scenarios where crypto asset service providers facilitate access to decentralized finance (DeFi) lending protocols.
The regulator recommended that the EC conduct a cost-benefit analysis of potential legislative changes that could add intermediating crypto borrowing and lending to the list of services regulated under MiCA, potentially adding specific compliance requirements and oversight activity.