Lagarde Blocks Binance's Greek License Bid Amid Stablecoin Concerns

Christine Lagarde, president of the European Central Bank (ECB), intervened to block Binance's application for a license under the EU's Markets in Crypto-Assets (MiCA) regulation in Greece. According to the Wall Street Journal, Lagarde's intervention came after Binance's application was initially rejected due to concerns over money laundering and whether founder Changpeng Zhao passed the 'fit and proper' test.

The company failed to secure a license in Greece, which meant it had to stop serving customers in the region. The ECB chief's actions were reportedly motivated by concerns that Binance's scale could accelerate the use of dollar-backed stablecoins in the EU, something Lagarde has been vocal about opposing. She instead promotes the digital euro.

Lagarde's move may also be seen as a way to push for a proposed but not yet adopted EU reform, which would transfer licensing authority under MiCA from individual states to the European Securities and Markets Authority (ESMA). This reform is still pending.