EBA Says Crypto Lending Should Be Brought Under EU’s MiCA Framework
Summary
- The European Banking Authority said crypto lending services should be brought under the EU’s MiCA framework.
- The EBA said intermediated crypto lending and customer access to DeFi lending protocols should also be included in the regulatory framework.
- The EBA said the EU should review a cost-benefit analysis, separate compliance requirements, supervisory measures, and the introduction of a certification regime for DeFi lending protocols.
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The European Banking Authority said crypto lending services should be brought within the European Union’s Markets in Crypto-Assets, or MiCA, framework.
BlockBeats reported on September 24 that the EBA, in comments recently submitted to the European Commission’s consultation on MiCA standards, proposed bringing intermediated crypto lending into the regulatory regime.
The EBA said the scope should cover not only lending provided directly by crypto firms, but also services that broker or facilitate customer access to decentralized finance, or DeFi, lending protocols.
It also said the EU should conduct a cost-benefit analysis ahead of any MiCA revision and examine whether intermediated crypto lending should be added to the list of regulated services. The authority proposed separate compliance requirements and supervisory measures tailored to the nature of those services.
The EBA also proposed introducing a separate certification regime for DeFi lending protocols. Under that approach, crypto companies that intermediate DeFi lending services for customers would be allowed to connect only to protocols that meet safety and regulatory compliance standards.
