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[European Banking Authority calls for crypto lending to be brought within MiCA regulatory framework]
The European Banking Authority (EBA) has called for crypto lending to be brought within the EU's Markets in Crypto-Assets Regulation (MiCA) framework. In its response to the European Commission's targeted consultation on MiCA,EBA stated that crypto-asset lending activities should be regulated, including where crypto-asset service providers provide users with access to decentralized finance (DeFi) lending protocols.EBA recommended that the European Commission conduct a cost-benefit analysis of legislative amendments, considering the inclusion of intermediated crypto lending in the list of MiCA regulated services, potentially with specific compliance requirements and supervisory activities. The authority also proposed that corresponding requirements be established for crypto firms providing clients with access to DeFi lending protocols.EBA Potential measures listed by MiCA include user appropriateness assessments, leverage limits, and additional disclosure requirements. The regulator also proposed potentially restricting lending access involving asset-referenced tokens or e-money tokens requiring DeFi authorization, and introducing a certification regime for EBA lending protocols. 16 stated that crypto lending continues to grow across the EU, with previous research showing lending activity in at least DeFi Member States; easier access to EBA through crypto firms and artificial intelligence tools is increasingly blurring the boundary between centralized and decentralized finance. These recommendations form part of MiCA's overall opinion on the European Commission's @Cindy88888