Lagarde Blocks Binance's Greek MiCA Bid Amid Stablecoin Concerns

Binance's bid to gain regulatory approval in Greece through the MiCA (Markets in Crypto-Assets) framework has been marred by controversy, with reports emerging that European Central Bank President Christine Lagarde personally intervened to block the exchange's application.

The Wall Street Journal reported on September 18 that Lagarde had pressed Greek Prime Minister Kyriakos Mitsotakis against approving Binance's application, citing concerns about the company's past financial-crime violations in the US and its use of U.S. dollar stablecoins inside Europe.

Lagarde has publicly raised similar policy concerns without referring specifically to Binance, warning that foreign-currency stablecoins could lead to 'digital dollarisation' and a loss of monetary sovereignty for Europe if deeply embedded in its financial system.

Binance had been preparing to announce an EU-wide regulatory approval through Greece in late May, with co-CEO Richard Teng planning to travel to Athens for a meeting and photograph with Mitsotakis. However, the exchange withdrew its application on June 24 after the Hellenic Capital Market Commission (HCMC) was reportedly preparing to reject it.