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 European Union’s Markets in Crypto-Assets (MiCA) regulatory framework.
- The EBA proposed including intermediated crypto lending and support for access to DeFi lending protocols within 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 Sept. 24 that the EBA made the proposal in comments recently submitted to the European Commission’s public consultation on MiCA standards. The authority proposed bringing intermediated crypto lending into the regulatory framework.
The services cited by the EBA include not only cases in which crypto firms provide loans, but also cases in which they intermediate or support customer access to decentralized finance, or DeFi, lending protocols.
The EBA said the EU should conduct a cost-benefit analysis before revising MiCA and consider adding intermediated crypto lending to the list of regulated services. It also proposed separate compliance requirements and supervisory measures tailored to the characteristics of those services.
The authority also proposed a separate certification regime for DeFi lending protocols. Under that approach, crypto firms intermediating DeFi lending services for customers would be allowed to connect only to protocols that meet standards for stability and regulatory compliance.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul