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

The European Banking Authority has recommended that crypto lending and DeFi intermediation be brought within the scope of the Markets in Crypto-Assets regulation, according to finance.biggo.com. The proposal reflects a growing view among European supervisors that certain activities falling outside MiCA's current perimeter may warrant comparable rules.

For market participants, the recommendation signals a possible shift in how regulators classify services that connect users to decentralized protocols or involve the lending of crypto assets. MiCA already sets requirements for issuers and service providers; extending its reach could subject more intermediaries to authorisation, disclosure and conduct standards.

The key point is that this remains a recommendation, not enacted law. Any change would require the European Commission to propose legislation and EU co-legislators to agree. Until then, firms operating in these areas face continued uncertainty over which rules apply. What to watch: whether the Commission takes up the EBA's advice, and how any future proposal defines DeFi intermediation, since that boundary will shape compliance obligations across the sector.