Lagarde Blocks Binance's EU License Bid

The European Central Bank's (ECB) President Christine Lagarde has been accused of personally intervening to block Binance's application for an EU-wide license, according to a report by The Wall Street Journal. This move would have allowed the world's largest exchange to operate freely across the bloc.

The bid was reportedly complete in late May, with Greek officials telling Binance that its application had been approved, but Lagarde's intervention led to the rejection of the bid. This reversal took about a week, with Binance withdrawing its application on June 24, before the Hellenic Capital Market Commission (HCMC) issued any decision.

The ECB has denied any involvement in blocking Binance's license, but sources close to the matter say that Lagarde was concerned about institutional turf and monetary policy. The EU is trying to build an alternative to dollar-denominated stablecoins, with a digital euro pilot possible in 2027 and a first issuance penciled in for 2029.

Binance's 2023 guilty plea in the US over money-laundering and sanctions violations gave the argument a clean hook. The exchange has since been locked out of the EU, cutting off approximately 2 million users who were left withdrawing assets rather than trading them.