Lagarde Blocks Binance's EU Entry Amid Digital Euro Concerns

The European Central Bank's President Christine Lagarde intervened to block Binance's application for a Europe-wide license, sources close to the matter said. The exchange had been preparing to announce its entry into the EU market in late May, but a top official at the Greek financial regulator told Binance that Lagarde personally opposed the license.

The move was seen as a major setback for Binance, which had submitted its application through Greece's Hellenic Capital Market Commission (HCMC) and had promised to generate 200 million euros ($230 million) in tax revenues and create 100 well-paid local jobs. The exchange had also created a local firm called Binary Greece, owned by an Abu Dhabi-based entity with Binance founder Changpeng Zhao as a shareholder.

Lagarde's intervention was reportedly due to concerns that Binance's dominance would embed the use of dollar-based stablecoins in Europe, rather than encouraging euro versions. The ECB is also working on its own digital euro project, which aims to create a single digital-payment option for the euro area. Lagarde has said she wants the euro to be 'fit for the future.'