European Central Bank (ECB) President Christine Lagarde personally asked Greek Prime Minister Kyriakos Mitsotakis to reject Binance's application for an EU crypto license, according to reporting by The Wall Street Journal.
Lagarde raised two main concerns about the application: Binance's history of US regulatory violations and potential risks to the ECB's planned digital euro project from increased dollar stablecoin adoption in Europe.
The License Application Process
Binance applied through Greek regulators for a crypto-asset service provider license under the EU's Markets in Crypto-Assets (MiCA) regulatory framework. Under this framework, approval from one EU member state extends to the entire bloc.
Greek authorities indicated in early June their intention to approve Binance's application and notified the European Securities and Markets Authority (ESMA) of this decision. The exchange had begun preparations for a formal European launch, including a planned Athens visit by chief executive Richard Teng.
Lagarde's Reported Opposition
An official at Greece's Hellenic Capital Market Commission (HCMC) informed Binance that Lagarde opposed the application, according to sources familiar with the discussions cited by the Journal.
Lagarde's concerns stemmed from Binance's earlier guilty plea to US money-laundering and sanctions violations, which she viewed as a compliance risk. Additionally, she reportedly feared that Binance's entry would accelerate dollar stablecoin adoption in Europe, potentially undermining the ECB's digital euro initiative.
Application Withdrawn
Binance withdrew its application in mid-June, before the HCMC reached a formal decision. The exchange subsequently ceased marketing to EU users after missing the July licensing deadline.
While the ECB holds no formal authority over exchange licensing under MiCA, national regulators oversee these decisions in their respective jurisdictions.
