Lagarde Blocks Binance MiCA License Over Stablecoin Concerns
European Central Bank president Christine Lagarde intervened to stop Binance from securing a license under the EU's Markets in Crypto-Assets (MiCA) regulation in Greece, according to the Wall Street Journal.
In June, Binance told customers that it would stop serving them within days after its application fell through due to concerns over money laundering and whether founder Changpeng Zhao passed the 'fit and proper' test.
The WSJ reports that a senior Greek regulator informed Binance that Lagarde wanted the license decision delayed until it could be made by the European Securities and Markets Authority (ESMA), citing concerns about the scale of Binance's operations potentially accelerating the use of dollar-backed stablecoins in the bloc.
Lagarde has been a vocal sceptic of stablecoins, instead promoting the digital euro. EU leaders have also expressed concerns about the possible impact on US stablecoins on EU payments sovereignty.