ECB President Christine Lagarde personally asked Greek Prime Minister Kyriakos Mitsotakis to block Binance's application for a license to operate across the European Union, according to a Wall Street Journal report citing people familiar with the discussions.
The intervention occurred after Greek regulators had nearly approved the application, raising questions about the ECB president's influence over a licensing process where she holds no formal authority.
The Application Process
Binance applied through Greece's Hellenic Capital Market Commission for a license under the EU's Markets in Crypto-Assets framework. Once granted by one member state, such approval covers the entire bloc.
By early June, the application had cleared its technical review. The mandatory 40-day assessment period ended without objections, the HCMC's anti-money laundering officer had approved the application, and notifications to other member states were reportedly being prepared.
Between June 7 and June 15, the status changed. An HCMC official later told Binance that Lagarde opposed the license, a position that reportedly overrode Greece's own finance minister.
Lagarde's Stated Concerns
According to the report, Lagarde's reasoning focused on two issues: Binance's earlier guilty plea to US money laundering and sanctions violations, and concern that approving the exchange would push more users toward dollar stablecoins while the ECB was developing its own digital euro.
Regulatory Rejection and Alternative Paths
Binance initially pushed back, noting that the HCMC's review had found its application compliant and highlighting its compliance team, which has grown to approximately 1,500 people since its 2023 US settlement.
The company ultimately withdrew its Greek application and began seeking authorization from other member states. Regulators in Ireland and Latvia also rejected the exchange, citing its past penalties and complex structure.
Binance is now pursuing a Markets in Crypto-Assets license through France, where it holds a smaller registration and is in discussions with the country's financial markets regulator, Autorité des Marchés Financiers. Coinbase operates from Luxembourg, while Kraken already holds EU approval.
