EBA Urges EU to Regulate Crypto Lending Under MiCA — SkimNews
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- EBA called for crypto lending and borrowing — including lending accessed via DeFi protocols — to be regulated under MiCA, in a response to the Commission's targeted MiCA consultation.
- EBA recommended the European Commission conduct a cost-benefit analysis of legislative changes that could add intermediated crypto borrowing and lending to MiCA's list of regulated services.
- Proposed measures include suitability tests for users, leverage limits, additional disclosure requirements, and a certification regime for DeFi lending protocols.
- EBA raised the possibility of restricting access to lending involving asset-referenced or e-money tokens that require MiCA authorization.
- EBA cited research showing crypto borrowing and lending activity in at least 16 EU member states, noting AI tools and easier DeFi access are blurring the boundary between centralized and decentralized finance.
- The recommendations form part of EBA's broader input into the Commission's MiCA review, which also covers stablecoin rules, crypto-asset classification, and reporting requirements.
Why it matters: The EBA's push to fold DeFi-mediated lending into MiCA could tighten compliance requirements for EU crypto firms offering lending products or DeFi access, with a possible certification regime for protocols. With activity already documented across at least 16 EU member states, the cost-benefit analysis the EBA recommends will shape whether DeFi intermediation formally enters the bloc's crypto regulatory perimeter.
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