European Banking Authority pushes for MiCA review of crypto lending

The European Banking Authority (EBA) wants loans and borrowing backed by cryptoassets brought into the MiCA framework, after the European Commission asked for a review of the rules. For PSPs and crypto firms, the practical point is simple: lending, DeFi access, and group-level supervision are moving closer to the same regulatory conversation.

1. The EBA recommends that the European Commission assess whether loans and borrowings of cryptoassets should be added to the list of services already supervised under MiCA, including cases where firms only provide access to DeFi (decentralized finance) protocols.
2. It also wants the Commission to weigh the costs and benefits of regulating the intermediation of these loans within the EU. In other words, the question is not only whether the lending activity itself belongs under MiCA, but whether the platforms connecting users to it should be inside the perimeter too.
3. On user protection, the EBA proposes suitability tests, leverage limits, and stronger disclosure requirements. It also suggests restricting access to loans using asset-referenced tokens or e-money tokens authorised under MiCA, and creating a dedicated certification regime for DeFi lending protocols.
4. The regulator says crypto lending is growing across the European Union. Previous studies found lending and borrowing activity with cryptoassets in at least 16 countries in the bloc, and the EBA notes that easier access to DeFi, together with the use of AI tools, is blurring the line between traditional and decentralised finance.
5. Beyond lending, the EBA points to a broader supervision gap around large crypto conglomerates operating in Europe. Under MiCA, different firms have started offering digital services in the region under mixed models: some are traditional banks, while others combine cryptoassets, tokenised assets, and conventional currencies with services such as custody, payments, or unregulated lending.

The EBA says many of these companies operate mainly outside the European Union. Binance left the bloc in July after failing to obtain a MiCA licence, while Coinbase is also named among the groups in question. The issue, according to the EBA, is that companies within the same group are often linked by financial, operational, and brand ties, which can create client risks that are not fully covered today.

The current EU supervisory framework for financial conglomerates only applies to groups with traditional banking, insurance, or investment activities, because it was designed before cryptoassets existed. That leaves European supervisors relying on information-sharing arrangements with other jurisdictions, and those do not always cooperate. That is why the EBA wants the framework updated rather than patched with hand-me-down tools from the pre-crypto era.