Lagarde Blocks Binance EU License

ECB President Christine Lagarde intervened to delay Binance's bid for a European Union crypto license in Greece. The Wall Street Journal reported that this high-level action caused Greek regulators to stall an application they had previously deemed complete.

Binance withdrew its Greek application in mid-June. The company stated it remains committed to operating in Europe under the Markets in Crypto-Assets Regulation, despite the recent setback.

Lagarde Cites Digital Euro Risks

Lagarde reportedly worried that Binance could expand the use of dollar-based stablecoins. She feared this would undermine the digital euro and other euro-denominated alternatives. The ECB holds no formal licensing authority under MiCA, yet its influence shaped the decision.

A senior Greek regulator told Binance that Lagarde wanted the decision delayed. This delay was intended to wait for the European Securities and Markets Authority to take over licensing decisions under a proposed EU reform.

Regulatory Process Remains Fragmented

MiCA approval is granted by the financial regulators of individual EU countries. Approval in one country allows the recipient to operate across the bloc. The ECB is influencing these decisions due to concerns over stablecoins and the digital euro.

The Wall Street Journal also reported that ESMA privately advised national regulators to reject Binance's applications. These concerns stemmed from the exchange's past compliance issues. An ECB spokesperson declined to comment, noting the ECB has no institutional role in authorizing crypto-asset service providers.

Binance Maintains Compliance Stance

Gillian Lynch, Binance's head of Europe, told CoinDesk that the exchange met all requirements of the Hellenic Capital Market Commission. She stated that the application was complete and nothing material was outstanding. Binance said it is actively working toward becoming MiCA-authorized.

Changpeng Zhao, the founder of Binance, pleaded guilty in the U.S. in 2023 to violating the Bank Secrecy Act. He agreed to pay $4.3 billion in fines and served a four-month prison sentence in California in 2024. President Donald Trump pardoned him in October 2025.