The European Banking Authority recommends incorporating encrypted lending into the MiCA regulatory framework

The European Banking Authority recommends that the EU include cryptocurrency lending in the MiCA framework and strengthen regulatory requirements for cryptocurrency service providers to assist customers in accessing DeFi lending protocols. The European Banking Authority recommends that the European Commission conduct a cost-benefit analysis of legislative changes, consider adding compliance requirements for intermediary based crypto lending services, and set user suitability testing, leverage restrictions, and additional disclosure requirements for crypto companies providing DeFi lending protocol access services.