Lagarde Blocks Binance EU License Bid Amid Stablecoin Concerns

The European Central Bank's President Christine Lagarde personally intervened in Greece to block Binance's application for a bloc-wide crypto license, according to a Wall Street Journal report. The move led Binance to withdraw its filing before regulators issued a formal decision.

Lagarde's concerns centered on Binance's compliance record and the trajectory of stablecoin adoption in Europe. The exchange pleaded guilty in 2023 to violations of the Bank Secrecy Act, failing to register as a money transmitting business, and sanctions laws, agreeing to a settlement exceeding $4 billion.

Lagarde worried that granting Binance a MiCA passport would accelerate usage of dollar-denominated stablecoins inside the bloc, undercutting the ECB's monetary sovereignty push and its work on a digital euro. The HCMC said it reviewed Binance's application independently under Greek and EU rules.