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      European Banking Authority Calls for Crypto Lending Regulation Under MiCA

      The European Banking Authority (EBA) has urged the European Commission to include crypto lending in its review of the Markets in Crypto-Assets (MiCA) regulatory framework. This recommendation highlights the need for regulation of crypto asset service providers that facilitate access to decentralized lending protocols, which the EBA believes pose risks to consumers that are not adequately addressed by current regulations.

      In addition to crypto lending, the EBA has called for stricter regulations on multi-issuer stablecoins from third countries. While the EBA considers existing requirements for asset-referenced tokens and electronic money tokens largely appropriate, it acknowledges that these arrangements can introduce significant risks that may necessitate amendments to MiCA. The authority also emphasized the need to reassess reserve requirements for stablecoin issuers, particularly regarding the minimum percentage of reserves that must be maintained as bank deposits.

      The EBA identified the classification of crypto assets as a significant challenge, noting that unclear distinctions between MiCA and other EU financial regulations can lead to unnecessary costs and delays for companies launching new products. To address this, the EBA has recommended clearer definitions and scopes for crypto asset classifications. Furthermore, the authority has suggested a review of the reporting framework for token issuers and crypto service providers to enhance supervision and risk monitoring.

      MiCA became fully applicable in December 2024, with its stablecoin provisions taking effect six months earlier. As of September 1, 2026, 39 electronic money tokens had been issued under this framework, while no asset-referenced tokens had received authorization. The European Commission is currently conducting a broader review of MiCA to assess its effectiveness in light of the evolving crypto market, with a consultation period open until September 30, 2026.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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