EU regulators spotlight DeFi risks and crypto lending
The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have released a joint report analysing developments in the crypto-asset sector.
The report focuses on decentralised finance (DeFi), crypto lending, borrowing, and staking. This contribution supports the European Commission’s report to the European Parliament and Council under Article 142 of the Markets in Crypto-Assets Regulation (MiCAR).
DeFi adoption and risks highlightedAccording to the report, DeFi remains a niche sector, with the total value locked in DeFi protocols accounting for just 4% of the global crypto-asset market value. While EU adoption of DeFi exceeds the global average, it lags behind other advanced economies…
