EBA Urges MiCA Oversight for Crypto Lending, Including Services That Provide Access to DeFi Protocols

The European Banking Authority (EBA) said on Sept. 24 the EU should bring crypto-asset lending within the scope of the Markets in Crypto-Assets Regulation (MiCA), including cases where crypto-asset service providers help clients access decentralized finance (DeFi) lending protocols. The EBA called on the European Commission (EC) to run a cost-benefit analysis on potential legislative changes. It also suggested introducing compliance obligations and supervisory measures for intermediary crypto-lending services, with additional requirements for crypto firms that facilitate access to DeFi lending protocols. Options cited include user suitability assessments, leverage caps, and stronger disclosure standards. The watchdog also proposed tightening rules around lending that involves asset-referenced tokens or e-money tokens that require MiCA authorization, and creating a certification regime for DeFi lending protocols. The EBA noted that crypto lending is already active in at least 16 EU member states. It added that growing use of crypto firms and AI tools is increasingly blurring the distinction between centralized and decentralized finance. The recommendations are part of the broader MiCA review, which also examines stablecoin rules, crypto-asset classification, and reporting requirements.