Binance’s efforts to secure a Europe-wide license to operate in the European Union were reportedly derailed by direct intervention from European Central Bank (ECB) President Christine Lagarde, according to sources familiar with the matter.
The cryptocurrency exchange, the world’s largest by trading volume, had been preparing a significant announcement in late May to mark a key regulatory milestone. Binance had submitted its application for a license under the EU’s new Markets in Crypto-Assets (MiCA) regulatory framework through the Greek financial regulator, the Hellenic Capital Market Commission (HCMC), which had initially indicated progress toward approval. Binance CEO Richard Teng planned a public appearance in Athens alongside the Greek prime minister, and local leadership was finalizing office arrangements in Greece.
However, in the days following these preparations, senior HCMC officials informed Binance that Lagarde had personally intervened to prevent the license application from moving forward. The move appears to have been driven by concerns at the ECB about Binance’s legal history, including its prior guilty plea to financial-crime violations in the United States. Sources also cited Lagarde’s broader strategic considerations, particularly related to the ECB’s own digital euro initiative. According to these accounts, Lagarde was intent on ensuring that the digital euro project’s rollout—intended to provide a unified digital payment system across the eurozone—would not be undermined by Binance’s operations or the dominance of dollar-pegged stablecoins on the platform.
Binance’s trading volume largely involves cryptocurrencies tied to the U.S. dollar, which constitute over 99% of the global stablecoin market. ECB officials reportedly viewed this as a threat to the development of euro-based stablecoins within the EU financial ecosystem. Following Lagarde’s intervention, HCMC officials informed Binance that the necessary regulatory “convergence” to approve the license was lacking. Binance eventually withdrew its application in mid-June before a formal rejection was issued.
Binance founder Changpeng Zhao expressed disappointment on social media, stating that it was unfortunate the EU was cutting off access to what he described as some of the best liquidity in the crypto market.
The HCMC declined to confirm the details attributed to its staff, while a Binance spokesperson criticized the MiCA process for allowing what they described as “private” and “informal” undermining of license applications.
Though the ECB does not have an official role in approving licenses under MiCA— a responsibility delegated to national regulators—Lagarde has been known for her active engagement across various European policy areas during her tenure, which concludes next year. Her intervention in Binance’s EU licensing process underscores her focus on safeguarding the continent’s economic interests amid the rapid evolution of digital finance.