ECB’s Lagarde personally blocked Binance’s EU expansion, WSJ reports

European Central Bank President Christine Lagarde personally intervened with Greek Prime Minister Kyriakos Mitsotakis to prevent Binance ↗ 1.74%, the world's largest cryptocurrency exchange, from obtaining a license that would have opened the entire European Union market to the company, The Wall Street Journal News Corp ↘ 0.21% reported on Thursday.bloomingbit+1

A Deal Undone

Binance had been on the verge of a breakthrough in late May. Greek authorities had informed the exchange that its application for a crypto-asset service provider license under the EU's Markets in Crypto-Assets regulation, known as MiCA, was essentially finalized. A press release titled "Major Milestone" had been drafted, and CEO Richard Teng was planning a trip to Athens for a photo opportunity with the prime minister. A local office lease was close to being signed.wsj

The plan unraveled after an official at the Hellenic Capital Market Commission told Binance that Lagarde opposed the move, according to the Journal, citing people familiar with the matter. Greek authorities had already informed the European Securities and Markets Authority's Digital Finance Standing Committee in early June that they planned to approve the application.bloomingbit

Lagarde's Concerns

Lagarde's objections centered on two issues: Binance's history of regulatory problems in the United States, where the exchange had admitted to financial crime-related charges, and fears that dollar-denominated stablecoins could gain wider use in Europe if Binance entered the market. A larger presence for dollar stablecoins could undermine the ECB's proposed digital euro.bloomingbit

The ECB does not have formal authority to approve or reject exchange licenses under MiCA. Those decisions rest with each member state's financial regulator, and approval in one country allows a company to passport services across all 27 member states.tradingview+1

The Fallout

Binance withdrew its Greek application on June 24, before the HCMC reached a formal conclusion. Without a license by the July 1 MiCA deadline, the exchange halted new registrations and restricted services for users in France, Italy, Poland, Spain, and other EU countries. Months later, Binance still does not appear on ESMA's register of authorized providers, though a Bloomberg investigation found the company continues to serve EU customers through workarounds including a "reverse solicitation" exemption. Binance has said it is pursuing a license through France and expects authorization "in the coming months".amlintelligence+5