Odaily Planet Daily News: The European Banking Authority (EBA) said that the EU should include crypto asset lending into the (Markets in Crypto-Assets Regulation) (MiCA) framework. The regulatory scope should also cover cases in which crypto asset service providers assist clients in accessing DeFi lending protocols.

EBA recommends that the European Commission (EC) conduct a cost-benefit analysis of relevant legislative changes, and consider adding compliance requirements for intermediary crypto lending services and supervisory activities. It also proposes setting additional requirements for crypto companies that provide services to access DeFi lending protocols.

Potential measures include suitability testing for users, leverage limits, and additional disclosure requirements. The EBA also proposed restricting lending that involves asset-referenced tokens or e-money tokens that require MiCA authorization, and establishing a certification framework for DeFi lending protocols.

EBA said that crypto lending has been carried out in at least 16 EU member states, and that using crypto firms and AI tools to access DeFi is blurring the lines between centralized finance and decentralized finance. The relevant recommendations are part of the MiCA review; the review also covers stablecoin rules, classification of cryptoassets, and reporting requirements. (Cointelegraph)