Marina Markezic, director and co-founder of the European Crypto Initiative (EUCI), has expressed concerns about the Markets in Crypto-Assets Regulation (MiCA) leaving crypto lending and borrowing to national laws. She calls for clearer regulations to ensure financial stability. Markezic made her statement in a January 16 post on X.
“MiCA does not specifically regulate lending and borrowing of crypto-assets, leaving it to national laws,” said Markezic. “The report suggests that clearer definitions and regulations are needed to ensure financial stability.”
According to Markezic, a joint report released by the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) analyzes crypto-assets, decentralized finance (DeFi), and related activities. The report highlights the need for clearer regulations, particularly since “MiCA does not specifically regulate” these areas, which is necessary to address risks and ensure financial stability.
The report examines crypto lending, borrowing, and staking services in both centralized and decentralized models offered by various crypto-asset service providers (CASPs) in the European Union. It finds limited engagement from EU consumers and financial institutions while highlighting risks such as excessive leverage, information gaps, and exposure to money laundering/terrorist financing risks. Despite these concerns, ESMA states that the EBA and ESMA did not identify immediate risks to financial stability.
According to the Autorité des Marchés Financiers (AMF), MiCA regulation mandates that CASPs obtain authorization before offering services. They can do so by getting approval from national authorities or notifying them if they are already authorized under specific statutes. The regulation imposes obligations on CASPs including incorporation requirements, governance standards, client asset protection measures, and complaints handling procedures. CASPs must also adhere to prudential standards and maintain business continuity plans while complying with anti-money laundering and cybersecurity regulations.
Markezic is known for her focus on crypto regulation through her role at EUCI. She has been involved with crypto projects since 2017, specializing in governance, DeFi, and non-fungible tokens (NFTs). Known for her expertise, she frequently speaks at blockchain events. Previously leading the advisory team at Cofound.it where she evaluated over 700 whitepapers, she was named one of the top 100 women in fintech by Lattice80 in 2018.
