EBA Recommends Bringing Crypto Lending and DeFi Intermediation Under MiCA Regulation - finance.biggo.com

The European Banking Authority has issued a recommendation to bring crypto lending and DeFi intermediation within the scope of the Markets in Crypto-Assets regulation, according to finance.biggo.com. The proposal reflects a growing regulatory view that activities sitting at the edges of existing crypto rules may carry risks that current frameworks do not fully capture.

For market participants, the development signals a possible shift in how European supervisors treat services that connect users to decentralized protocols or extend credit against crypto assets. MiCA was designed primarily around issuance and trading of crypto-assets, so applying it to lending and intermediation could reshape compliance expectations for firms operating in these areas.

What to watch is how EU legislators and supervisors respond to the EBA's recommendation, and whether it leads to formal amendments or new guidance. Until then, the recommendation is not law, but it offers a clear indication of the direction regulators may take as they seek consistent oversight of crypto-related activity across the bloc.