European Central Bank President Christine Lagarde has reportedly taken steps to hinder Binance's pursuit of a Markets in Crypto-Assets (MiCA) license in Greece, as reported by The Wall Street Journal.
The report indicates that Lagarde expressed concerns regarding the potential for Binance to promote the use of dollar-based stablecoins, which could threaten the euro and the European Central Bank's digital euro initiative.
Despite the ECB lacking formal authority over MiCA licensing, a senior Greek regulator informed Binance that Lagarde's intervention led to a postponement of their application, pending further oversight by the European Securities and Markets Authority (ESMA) as part of an upcoming EU regulatory framework.
MiCA licenses are issued by national regulators within the EU, allowing successful applicants to operate across the entire region. The Wall Street Journal noted that the ECB's influence stems from worries about stablecoins and their implications for the eurozone's digital currency plans.
Lagarde's apprehensions revolve around Binance's significant market presence as the largest crypto exchange globally, which could further entrench dollar-stablecoins in Europe, complicating the ECB's digital euro aspirations.
In response to these developments, a Binance spokesperson stated, "We will not comment on speculation." The spokesperson reaffirmed Binance's commitment to achieving compliance under the EU's MiCA regulation and emphasized their intention to continue pursuing the necessary licensing.
The company had previously withdrawn its Greek application in June after the Hellenic Capital Market Commission (HCMC) unexpectedly chose not to approve it. Nevertheless, Binance remains dedicated to its European operations.
Gillian Lynch, Binance's head for Europe, noted in a July interview with CoinDesk that the exchange had fulfilled all of HCMC's requirements, asserting that their application was complete and nothing critical was lacking.
Furthermore, the Wall Street Journal reported that ESMA had advised national regulators to reject Binance's MiCA applications based on concerns regarding the exchange's history of compliance issues.
While an ECB spokesperson declined to comment directly, they indicated that the ECB does not play a role in authorizing Crypto-Asset Service Providers, a responsibility that falls to national authorities, in this case, the HCMC.
Binance's founder, Changpeng "CZ" Zhao, has a controversial background, having pleaded guilty in the U.S. to violating the Bank Secrecy Act and facing penalties, including a prison sentence in California in 2024, before being pardoned by former President Donald Trump in 2025.