Professor Emilios Avgouleas holds the (statutory) International Banking Law and Finance Chair at the University of Edinburgh and is the founding director of the Edinburgh LLM in International Banking Law and Finance. He currently serves as a member of the European Securities and Markets Group, the Stakeholder Group of the European Securities and Markets Authority (ESMA). Emilios is also a senior research fellow at Edinburgh University’s blockchain lab. He is a fellow member of the academic board of the European Banking Institute (EBI) and research member/fellow of the renown European Corporate Governance Institute (ECGI) and a member ( of the Monetary Committee of the International Law Association (MOCOMILA), the leading committee of central bank chief counsel and world experts in International monetary and financial law.
How should Crypto-Lending be Regulated under EU Law?
Abstract:
One of the biggest challenges facing policymakers with respect to crypto markets is the treatment of crypto lending. ECB president Lagarde recently stated that crypto lending should be regulated.1 According to the ECB president, the growing incidences of fraud, criminal dealings and dubious valuation practices in the crypto lending space pose severe risks for consumers. One question flowing from her statement is how should crypto lending be regulated? The present article will explore avenues to regulate crypto lending within the framework of EU financial services regulation. It will argue that crypto lenders fall within the definition of credit institutions under EU law. As a result, they are subject to the stringent licensing and prudential requirements introduced by the Capital Requirements Directive and Regulation.