Lagarde Presses Greece to Halt Binance's Pan-European Crypto License

ECB President Christine Lagarde reportedly intervened in Greece's decision-making process to block Binance from obtaining a pan-European crypto license under the EU's Markets in Crypto-Assets (MiCA) framework. According to a Wall Street Journal report, Lagarde personally pressed Greek leaders to halt the process after Binance had submitted its application and was close to receiving approval.

The application, which was assessed independently by Greece's Hellenic Capital Market Commission (HCMC), had been deemed complete by late May. However, in early June, a senior Greek official informed Binance that Lagarde had asked Prime Minister Kyriakos Mitsotakis not to grant the license due to concerns over Binance's compliance history and its potential impact on the ECB's digital euro project.

The objections were reportedly twofold: Binance's 2023 US guilty plea to Bank Secrecy Act, money-transmission, and sanctions violations, which resulted in a $4.3 billion settlement; and concern that the world's largest exchange would accelerate the use of dollar-backed stablecoins in Europe, undercutting the ECB's digital euro project and euro-denominated alternatives.

The HCMC spokesperson disputed parts of the account, stating that the application was assessed independently and that comments attributed to its officers were not made. An adviser to Greece's finance minister also denied any government intervention, describing the HCMC as an independent authority.