Lagarde Blocks Binance's EU Crypto Market Bid

Binance's bid to enter Europe's regulated crypto market fell apart within days of being close to approval. The exchange had spent months preparing for this moment, but its efforts were ultimately thwarted by opposition from European Central Bank (ECB) President Christine Lagarde.

Lagarde reportedly opposed granting Binance a MiCA license in Greece and raised her concerns with Greek Prime Minister Kyriakos Mitsotakis. The ECB has no formal role in licensing crypto exchanges, but this intervention adds weight to claims that emerged when Binance's bid ran into trouble in June.

Binance believed the process was well advanced by June, and the company said it understood that the Hellenic Capital Market Commission had completed its review and considered the application compliant with MiCA requirements. However, Reuters reported on June 16 that the bid was set to be rejected, citing people familiar with the process.

The exchange maintained that it had received no formal indication of a rejection and had worked with regulators for more than a year. Eight days later, Binance withdrew its application before a final decision was issued and said it would seek authorization in another EU country.