Lagarde's Backroom Deal: ECB Chief Tries to Block Binance EU License
Christine Lagarde's reported intervention in Binance's Greek license bid has sparked controversy over her role as European Central Bank president. According to The Wall Street Journal, Lagarde personally phoned Greek Prime Minister Kyriakos Mitsotakis to delay the decision on Binance's Markets in Crypto-Assets (MiCA) license application through Greece. This would have allowed Binance to operate across all 27 EU member states.
The MiCA license process was designed to clarify crypto regulation, with firms applying in one member state and meeting rules to use that authorization across the bloc. However, The ECB spokesperson clarified that the central bank has no institutional role in authorizing crypto-asset service providers, which is handled by national competent authorities.
Binance had cleared more of the process than critics may think, with its application deemed complete and expected authorization in early June. However, Lagarde's reported concern was not only Binance's past compliance record but also its scale, fearing it could deepen the use of dollar-based stablecoins in Europe, weakening the ECB's digital euro project.
Binance has a history of non-compliance, having pleaded guilty to violating the Bank Secrecy Act and failing to register as a money transmitting business. The company agreed to pay $4.316 billion in penalties and forfeiture, with its founder Changpeng Zhao pleading guilty to failing to maintain an effective anti-money laundering program.