Lagarde's Intervention Scuttles Binance's Bid for European Crypto License

Binance's bid to enter Europe's regulated crypto market fell apart after months of preparation. Reports emerged that European Central Bank (ECB) President Christine Lagarde may have been behind the unexpected turn. According to sources, Lagarde opposed granting Binance a MiCA license in Greece and raised her concerns with Greek Prime Minister Kyriakos Mitsotakis.

The ECB has no formal role in licensing crypto exchanges, but Lagarde's reported intervention adds weight to claims that surfaced when Binance's bid ran into trouble in June. At the time, there were indications that the exchange had been close to approval before opposition emerged elsewhere in Europe's regulatory system.

Greek authorities dispute parts of this account, stating that they assessed Binance independently under EU and Greek rules. The Hellenic Capital Market Commission says it considered the application compliant with MiCA requirements, but Reuters reported on June 16 that the bid was set to be rejected, citing people familiar with the process.

Binance maintained that it had received no formal indication of a rejection and had worked with regulators for over a year. Eight days later, the exchange withdrew its application before a final decision was issued and said it would seek authorization in another EU country.