EU Reviews Crypto Lending Rules Under MiCA Amid Growing Regulatory Scrutiny

The European Commission has launched a review of crypto lending rules under the Markets in Crypto-Assets Regulation (MiCA), seeking public feedback until August 31.

MiCA, which came into effect in 2023, provides a regulatory framework for crypto assets but does not explicitly cover lending and borrowing services. The Commission wants to assess whether these activities should be integrated into the existing framework or require separate rules.

The review aims to address potential gaps in consumer protection and financial stability, as several crypto lending platforms have collapsed in recent years, leaving users unable to withdraw their funds.