It’s not just the two words “lending and borrowing” that the EBA is targeting this time.
BlockBeats reported on September 24 that, in response to the European Commission’s opinion on the MiCA targeted consultation, the European Banking Authority (EBA) called for crypto lending and borrowing to be brought within the EU’s regulatory framework for crypto-asset markets. The scope includes cases where crypto-asset service providers facilitate clients’ access to DeFi lending and borrowing protocols.
The EBA also mentioned that potential measures could include suitability testing, leverage limits, increasing disclosures, and potentially restricting access to borrowing involving asset-referenced tokens or e-money tokens that require MiCA authorization. It also proposed introducing a certification regime for DeFi lending and borrowing protocols. At the same time, it noted that crypto lending and borrowing continues to grow within the EU, with at least 16 member states conducting lending and borrowing activities.
One observation is that, in the short term, what may be hit first could be compliance expectations for high-leverage borrowing and certain yield-based products. Another observation is that, if subsequent rules become clearer, the operating boundaries for compliant platforms will also be more clearly defined. Lending and borrowing tracks such as AAVE, COMP, and others will be repriced for regulatory costs. Are you more concerned about leverage limits, or about how DeFi lending and borrowing access will be regulated?
Figure 1: EBA suggests including crypto lending and borrowing in MiCA regulation · Source page partial screenshot
Image source: https://www.theblockbeats.info/flash/368849
BlockBeats reported on September 24 that, in response to the European Commission’s opinion on the MiCA targeted consultation, the European Banking Authority (EBA) called for crypto lending and borrowing to be brought within the EU’s regulatory framework for crypto-asset markets. The scope includes cases where crypto-asset service providers facilitate clients’ access to DeFi lending and borrowing protocols.
The EBA also mentioned that potential measures could include suitability testing, leverage limits, increasing disclosures, and potentially restricting access to borrowing involving asset-referenced tokens or e-money tokens that require MiCA authorization. It also proposed introducing a certification regime for DeFi lending and borrowing protocols. At the same time, it noted that crypto lending and borrowing continues to grow within the EU, with at least 16 member states conducting lending and borrowing activities.
One observation is that, in the short term, what may be hit first could be compliance expectations for high-leverage borrowing and certain yield-based products. Another observation is that, if subsequent rules become clearer, the operating boundaries for compliant platforms will also be more clearly defined. Lending and borrowing tracks such as AAVE, COMP, and others will be repriced for regulatory costs. Are you more concerned about leverage limits, or about how DeFi lending and borrowing access will be regulated?
Figure 1: EBA suggests including crypto lending and borrowing in MiCA regulation · Source page partial screenshot
Image source: https://www.theblockbeats.info/flash/368849
