WSJ Reports ECB Chief Lagarde Directly Blocked Binance's EU License Acquisition

Christine Lagarde, president of the European Central Bank (ECB), directly intervened to block Binance's attempt to obtain a Greek cryptocurrency business license needed for European Union-wide operations, according to a Wall Street Journal report citing sources. The media reported that Binance applied through Greek financial authorities for a license valid across the EU, with Greek authorities informing the European Securities and Markets Authority (ESMA) Digital Finance Committee of their approval in early June. Subsequently, a Greek capital markets committee (HCMC) official reportedly told Binance that Lagarde had requested Prime Minister Kyriakos Mitsotakis not to approve the license. The ECB cited concerns over Binance's past regulatory compliance issues and worries that the large exchange could strengthen its dominance over dollar stablecoins in Europe, potentially impacting digital euro initiatives.

However, the ECB does not hold authority under MiCA (Markets in Crypto-Assets) regulations for approving cryptocurrency exchange licenses. Binance withdrew its application mid-June before HCMC's official rejection and ceased promoting services to EU users by July after failing to secure the license.