ECB President Christine Lagarde blocks Binance's MiCA license application in Greece, citing concerns over dollar stablecoin influence on the euro.
Christine Lagarde, President of the European Central Bank (ECB), has intervened to obstruct Binance's application for a Markets in Crypto-Assets (MiCA) license in Greece, as detailed by The Wall Street Journal.
Lagarde's concerns focus on the risks posed by Binance in promoting dollar-based stablecoins, which could undermine the euro and the ECB's own digital euro ambitions. Although the ECB does not formally oversee MiCA licensing, a senior regulator in Greece revealed that Lagarde's intervention has delayed further progress on Binance's application, pending further evaluation by the European Securities and Markets Authority (ESMA).
MiCA licenses, which allow crypto firms to operate across the EU, are typically granted by national authorities. The ECB's influence in this case highlights growing anxiety about the role of stablecoins in the eurozone's digital currency future.
Binance, already the world's largest cryptocurrency exchange, poses significant competitive challenges to the euro, which is central to Lagarde's digital currency strategy. In light of these developments, a Binance spokesperson remarked, "We will not comment on speculation," while reiterating the company's commitment to comply with EU regulations.
The exchange had previously withdrawn its application in June after the Hellenic Capital Market Commission (HCMC) did not approve it. Despite this setback, Binance remains focused on its European operations, with Gillian Lynch, Binance's head of Europe, stating that all requirements from HCMC were met.
Further complicating matters, ESMA had recommended that national regulators deny Binance's MiCA applications, citing compliance concerns. An ECB spokesperson clarified that while the ECB influences discussions around crypto regulations, it does not have the authority to approve applications for Crypto-Asset Service Providers, a responsibility held by national regulators such as the HCMC.
Binance's founder, Changpeng "CZ" Zhao, faces prior legal issues, having pleaded guilty in the U.S. for violations related to the Bank Secrecy Act. He is slated to serve a prison sentence in California in 2024, following a pardon by former President Donald Trump in 2025.
