EU banking watchdog calls for crypto lending rules under MiCA
The EBA wants crypto lending brought under the EU’s MiCA regime as part of possible changes to the framework. It says crypto borrowing and lending, including services that give users access to DeFi lending protocols, should be regulated. It recommends the European Commission assess the costs and benefits of extending MiCA to cover intermediated crypto lending and adding specific compliance and supervisory requirements. Possible measures include suitability checks for users, leverage caps, extra disclosures, limits on lending involving asset-referenced or e-money tokens, and a certification regime for DeFi lending protocols. The EBA says crypto lending is expanding across the EU and that crypto firms and AI tools are making centralized and decentralized finance harder to distinguish. These ideas are part of its broader input on MiCA review, alongside stablecoins, crypto classification, and reporting rules.
