WSJ: Lagarde stymied Binance’s Greek bid for EU crypto license

Binance’s attempt to secure a Europe-wide cryptocurrency license through Greece was derailed after European Central Bank President Christine Lagarde intervened to oppose the application, according to the Wall Street Journal.

Citing people familiar with the matter and documents it reviewed, the WSJ reported that Binance was preparing to obtain the license in late May, with CEO Richard Teng planning to visit Athens for a photo opportunity with Prime Minister Kyriakos Mitsotakis.

However, a senior Greek regulator subsequently told Binance that Lagarde had asked Mitsotakis not to approve the application, according to the report. Lagarde was said to have concerns over Binance’s compliance record and the potential impact of its dollar-based stablecoins on Europe’s digital euro project.

The ECB has no formal role in approving crypto licenses under the EU’s Markets in Crypto-Assets (MiCA) rules, with decisions resting with national regulators. The European Securities and Markets Authority had also privately advised regulators to block Binance applications over its compliance record, the WSJ reported.

Binance withdrew its Greek application in June, saying it would seek authorization in another EU member state. The company had said the Greek regulator had completed its review and considered the application compliant with MiCA requirements.