The European Banking Authority (EBA) has asked the European Commission to examine new MiCA rules for crypto firms connecting customers to DeFi loans. The regulator is requesting a cost-benefit analysis of possible duties for intermediated crypto borrowing and lending, with two proposals: adding intermediated crypto lending to MiCA’s CASP services list, or setting requirements for CASPs facilitating access to DeFi lending protocols. Consumer risks identified include incomplete fee information, leverage amplifying losses, lack of creditworthiness checks, and potential over-indebtedness. The consultation closes on September 30 at 11:59 p.m., and the Commission’s report could be accompanied by a legislative proposal.
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