European Commission Reviews Expanding MiCA to Cover Crypto Lending
Summary
- The European Commission is reviewing whether to bring crypto lending and borrowing under regulatory oversight.
- The review centers on whether to expand the scope of the Markets in Crypto-Assets regulation (MiCA).
- Depending on the consultation results, the scope of MiCA could be expanded, with a final assessment due by June 2027.
Forecast Trend Report by Period
The European Commission is reviewing whether to bring crypto lending and borrowing under the European Union's regulatory framework. At issue is whether to expand the scope of the Markets in Crypto-Assets regulation, or MiCA.
Crypto outlet Crypto Briefing reported on August 21 that the European Commission's Directorate-General for Financial Stability, Financial Services and Capital Markets Union, known as DG FISMA, began a public consultation in May as part of its review of the MiCA framework. Crypto lending and borrowing are among the main issues under review.
The Commission is seeking feedback from market participants on whether crypto lending and borrowing should fall within MiCA's scope. The consultation could pave the way for an expansion of the rulebook.
Based on the feedback it receives, the Commission plans to assess MiCA's implementation and changes in the crypto market. A final assessment is due by June 2027.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.