Binance's application for a Markets in Crypto Assets (MiCA) license in Greece stalled following intervention by ECB President Christine Lagarde, according to a Wall Street Journal report. Lagarde allegedly ordered Greek regulators to stop the approval process, raising concerns that crypto exchanges are driving stablecoin adoption in ways that could undermine the ECB's planned Digital Euro.
The Digital Euro, the ECB's central bank digital currency, is scheduled for a test pilot beginning in mid-2027, with an official launch planned for 2029. Lagarde's reported focus on ensuring the Digital Euro is "fit for the future" appears linked to her concerns over USD-based stablecoins gaining market share through exchange platforms.
Binance withdrew its initial application with Greece's financial regulator (HCMC) in mid-June following the political pressure. The exchange has stated it plans to reapply for a license in another European country, potentially France, though the timeline remains uncertain.
MiCA's transitional period ended on July 1, 2026. Currently, national authorities handle licensing and enforcement, with the European Securities and Markets Authority (ESMA) providing oversight and coordination. From 2027, ESMA will become the sole regulator across the EU.
According to the WSJ report, there was a push to delay Binance's approval until ESMA assumes full regulatory authority. Binance's response criticized the process, arguing that MiCA approval should not occur through informal private channels that can undermine applicants.
Analysts have questioned whether Europe can apply its regulatory framework consistently and fairly across all applicants. Binance founder Changpeng Zhao also raised broader questions about banking sector concerns regarding cryptocurrency and blockchain technology.
Binance's 2023 guilty plea in the United States for money laundering and sanctions violations also reportedly factored into the licensing complications, beyond the stablecoin concerns raised by Lagarde.
