EBA Recommends MiCA Expansion to Cover Crypto Lending and DeFi Access Services

The European Banking Authority (EBA) has stated that the European Union should bring crypto lending activities under the MiCA framework, extending the scope to include service providers that assist clients in accessing DeFi lending protocols. The EBA suggests that the European Commission perform a cost-benefit analysis regarding these legislative changes and consider implementing compliance requirements such as user suitability tests, leverage limits, and disclosure mandates. The proposal also includes potential restrictions on lending involving asset-referenced tokens or e-money tokens that require MiCA authorization, as well as the establishment of a certification system for DeFi lending protocols.