The European Banking Authority called for the inclusion of encrypted lending in the MiCA regulatory framework, and proposed leverage restrictions and appropriateness tests.
On September 24, in response to the European Commission's comments on MiCA targeted consultation, the European Banking Authority (EBA) called for crypto lending to be included in the EU's crypto asset market regulatory framework, including the convenience of crypto asset service providers to facilitate client access to DeFi lending protocols. Shape. The EBA recommends that the European Commission conduct a cost-benefit analysis of legislative changes, include intermediary encryption lending in the list of regulated services under MiCA, and possibly attach specific compliance requirements and supervisory activities. It also put forward relevant requirements for encryption companies that provide customers with DeFi loan protocol access.
The potential measures listed by the EBA include: appropriateness testing of users, setting leverage restrictions, increasing information disclosure requirements, and possibly restricting lending access involving asset reference tokens or electronic currency tokens that require MiCA authorization, and introducing an authentication system for DeFi lending protocols. The EBA pointed out that crypto lending has continued to grow in the European Union. Previous studies have shown that at least 16 member states have lending activities. Access to DeFi more conveniently through encryption companies and artificial intelligence tools is increasingly blurring the boundaries of centralized and decentralized finance.
On September 24, in response to the European Commission's comments on MiCA targeted consultation, the European Banking Authority (EBA) called for crypto lending to be included in the EU's crypto asset market regulatory framework, including the convenience of crypto asset service providers to facilitate client access to DeFi lending protocols. Shape. The EBA recommends that the European Commission conduct a cost-benefit analysis of legislative changes, include intermediary encryption lending in the list of regulated services under MiCA, and possibly attach specific compliance requirements and supervisory activities. It also put forward relevant requirements for encryption companies that provide customers with DeFi loan protocol access.
The potential measures listed by the EBA include: appropriateness testing of users, setting leverage restrictions, increasing information disclosure requirements, and possibly restricting lending access involving asset reference tokens or electronic currency tokens that require MiCA authorization, and introducing an authentication system for DeFi lending protocols. The EBA pointed out that crypto lending has continued to grow in the European Union. Previous studies have shown that at least 16 member states have lending activities. Access to DeFi more conveniently through encryption companies and artificial intelligence tools is increasingly blurring the boundaries of centralized and decentralized finance.