EU could tighten access to DeFi lending as EBA pushes new MiCA rules
The European Union has moved closer to tighter oversight of DeFi lending access after the European Banking Authority called for crypto borrowing and lending services to be brought within the scope of the blocs Markets in Crypto Assets framework. According to the European Banking Authority, crypto asset service providers that connect customers to decentralized lending protocols could face new requirements if the European Commission decides to expand MiCA as part of its ongoing review. The EBA wants the Commission to conduct a cost benefit analysis of legislative changes that would add the intermediation of crypto borrowing and lending to the list of services regulated under MiCA. Its recommendations go beyond centralized crypto lenders and consider how regulated firms provide customers with access to DeFi protocols. Possible measures include suitability tests for users, limits on leverage and extra disclosure requirements. The regulator raised the prospect of restrictions involving lending products that use asset referenced tokens or e money tokens requiring authorization under MiCA. A certification regime for DeFi lending protocols could be considered as another option, particularly where regulated crypto firms act as the gateway through which customers access decentralized lending services. DeFi lending access could face MiCA checks Crypto lending activity has been identified in at









