Crypto
Home›Crypto›Regulation›EBA asks EU Commission to assess new MiCA rules for De…
EBA asks EU Commission to assess new MiCA rules for DeFi lending access
The EBA is urging the Commission to run a cost-benefit analysis before deciding whether crypto-asset service providers should be assigned new lending and suitability obligations for DeFi access.
The European Banking Authority has asked the European Commission to examine whether new MiCA rules are needed for crypto firms that connect customers to decentralized finance loans. In its September 24 response, the EBA calls for a cost-benefit analysis of possible duties for intermediated borrowing and lending and for crypto-asset service providers that enable access to DeFi lending through interfaces or products.
The EBA’s review centers on a structure where an on-chain protocol runs the loan, while a company provides the application that brings a customer to it. The authority says its recommendation itself does not change any lending rule, but it places the company-controlled access route within the Commission’s consideration for potential legislation.
The EBA identified two possible changes the Commission would weigh. One would add intermediating crypto borrowing and lending to MiCA’s list of CASP services, while the other would set requirements for CASPs facilitating access to DeFi lending protocols, including via an interface or a product that offers exposure to those protocols.
Under the EBA approach, the Commission would assess factors such as the scale of activities, retail participation, and the seriousness of the risks before deciding whether to pursue legislation, including the potential use of suitability tests for customers.