Lagarde Blocks Binance EU Expansion Amid Regulatory Concerns

European Central Bank President Christine Lagarde intervened personally to block Binance's expansion into the European Union, according to The Wall Street Journal. Citing people familiar with the matter, the Journal reported that Lagarde asked Greek Prime Minister Kyriakos Mitsotakis not to approve Binance's crypto-asset service provider license.

Binance had applied for a license through Greece's financial authorities, which initially planned to approve the application in early June. However, after an official at the Hellenic Capital Market Commission told Binance that Lagarde opposed the move, the company voluntarily withdrew its application in mid-June.

Lagarde was reportedly concerned about Binance's past regulatory compliance problems in the US and the potential impact of dollar-based stablecoins on the digital euro. If Binance were to enter the EU market, use of dollar stablecoins could rise and weaken the position of the ECB's proposed digital euro.