Lagarde’s Intervention Blocks Binance’s EU Crypto License Bid

The European Central Bank's (ECB) president, Christine Lagarde, played a crucial role in convincing Greece to block Binance's bid for an EU crypto license.

In May, officials at the Bank of Greece were set to approve Binance's application, but they needed someone with international respect and influence to explain why welcoming the world's largest crypto exchange was not just a bad idea but also potentially dangerous for a country like Greece.

Lagarde, known for her distrust of cryptocurrencies, has made it clear that she views them as a threat to EU monetary sovereignty. Her son lost money investing in crypto against her advice, and she has expressed concerns about stablecoins, which are considered safer due to their peg to regular currencies.

The Bank of Greece sought Lagarde's help after discovering Binance's application had several compliance issues, including inadequate anti-money laundering controls and an opaque corporate structure. The bank also knew that the EU's market and banking authorities were reviewing the impact of Binance's operations in various countries, with some flagging concerns about unauthorised operations and forum shopping.

Lagarde's involvement was successful in keeping Binance out of the EU for the time being, but the exchange has not stopped serving its millions of European customers. The incident highlights the gaps in the still-incomplete EU regulatory framework and raises questions about the effectiveness of current regulations.