EBA Proposes Including Crypto Lending Under MiCA Framework

The European Banking Authority (EBA) has recommended that crypto lending activities be integrated into the EU's Markets in Crypto-Assets (MiCA) regulation. In its response to the European Commission, the EBA suggested that crypto firms providing access to DeFi lending protocols should be subject to regulatory oversight, including suitability tests, leverage limits, and disclosure requirements. The agency noted that the blurring lines between centralized and decentralized finance, alongside the growth of lending across at least 16 EU member states, necessitate these measures to ensure consumer protection and financial stability.