WSJ: ECB's Lagarde Personally Intervened to Block Binance's EU Expansion
Summary
- Reports said ECB President Christine Lagarde asked the Greek prime minister to block approval of Binance's crypto-asset service provider license.
- The report said Binance's failed EU market entry was partly driven by concerns that wider use of dollar-based stablecoins could weaken the position of the digital euro.
- Binance said it voluntarily withdrew its license application before Greece's HCMC reached a final decision and halted service promotion for EU users.
Forecast Trend Report by Period
Christine Lagarde, president of the European Central Bank, personally intervened with the Greek government to block global crypto exchange Binance from entering the European Union market, according to a report.
The Wall Street Journal reported on September 17, citing people familiar with the matter, that Lagarde asked Greek Prime Minister Kyriakos Mitsotakis not to approve Binance's crypto-asset service provider license.
Binance applied through Greece's financial authorities for a license that would allow it to operate across the EU. In early June, Greek authorities informed the European Securities and Markets Authority's Digital Finance Standing Committee that they planned to approve the application, the report said. At the time, Binance had completed preparations to formally announce its European expansion and was arranging a visit to Athens by Chief Executive Officer Richard Teng.
The situation shifted after an official at the Hellenic Capital Market Commission, Greece's securities regulator, relayed Lagarde's opposition to Binance. The report said Lagarde was concerned about Binance's past compliance problems, including its admission in the US to charges related to financial crimes.
Concerns were also raised that dollar-based stablecoins could expand their influence in Europe. If Binance, the world's largest crypto exchange, entered the EU market, use of dollar stablecoins could increase and weaken the position of the ECB's proposed digital euro.
The ECB does not have direct authority to approve or reject exchange licenses under the Markets in Crypto-Assets regulation, or MiCA. Such reviews are handled by financial regulators in each member state, and a license granted in one country allows a company to offer services across the EU.
Binance voluntarily withdrew its application in mid-June before the Hellenic Capital Market Commission reached a formal decision. After it failed to secure a license by July, it also stopped promoting services to EU users. The Hellenic Capital Market Commission said it reviewed Binance's application independently under Greek and EU rules.
