Lagarde blocked European Binance licence in Greece

ECB President Christine Lagarde personally intervened to prevent Binance from obtaining an EU-wide licence via Greece. The Wall Street Journal reports this. The crypto exchange was on the verge of making a major announcement, with a press release ready and CEO Richard Teng prepared to travel to Athens for a photo opportunity with the Greek prime minister.

In brief:

• Lagarde blocked Binance’s MiCA licence application through direct contact with the Greek prime minister
• The crypto exchange had already prepared a press release and booked office space
• Concerns about dollar-based stablecoins and the digital euro played a role

The moment of confrontation

Binance had fully prepared for a breakthrough in the European market. The press release was headlined “Major Milestone” and local officials were in the process of renting office space. But days later the crypto exchange received a very different signal. A senior official at the Greek regulator said that Lagarde had personally intervened to block the licence application.

The incident illustrates the tension surrounding Binance’s expansion in Europe. The crypto exchange had submitted its MiCA application in January and in early June Greek officials said it had been fully completed. But in mid-June reports emerged that Lagarde had become involved in the dossier.

Why Lagarde intervened

Two considerations played a role in the ECB president’s decision. First, Lagarde wanted to wait and see whether the European Securities and Markets Authority (ESMA) would become centrally responsible for EU-wide crypto licences, instead of national regulators. This would provide more control at European level.

Second, she was concerned about the growing dominance of dollar-based stablecoins in Europe. Further expansion by Binance could strengthen that influence and undermine the development of the digital euro. This issue fits into a broader European debate about who has the final say over the authorisation of major crypto platforms under the MiCA regulation.

Binance declines to comment

Binance would not comment on the reporting about Lagarde’s intervention. “We will not respond to speculation,” a spokesperson said. “In Europe, Binance remains committed to long-term compliance with the MiCA regulations.”

The crypto exchange eventually withdrew its Greek application and sought authorisation in another EU country. Meanwhile, traditional financial institutions such as Deutsche Bank are indeed making progress in the European market. Deutsche Bank is working on a custody service for Bitcoin and Ether, indicating that it is less difficult for established players.