Lagarde Blocks Binance EU Expansion Over Regulatory Concerns

European Central Bank President Christine Lagarde personally intervened to block Binance's expansion into the EU market, according to The Wall Street Journal. In a move that surprised industry insiders, Lagarde asked Greek Prime Minister Kyriakos Mitsotakis not to approve Binance's crypto-asset service provider license.

The application was submitted through Greece's financial authorities and had been set for approval by early June. However, the situation changed after an official at the Hellenic Capital Market Commission told Binance that Lagarde opposed the move due to concerns over Binance's past regulatory compliance problems in the US.

Lagarde was also reportedly concerned about the potential impact on the digital euro if dollar-based stablecoins were to gain a larger foothold in Europe. After failing to secure the license by July, Binance voluntarily withdrew its application and stopped promoting services to EU users.