European Central Bank President Christine Lagarde personally intervened to prevent crypto exchange Binance from obtaining a Markets in Crypto-Assets (MiCA) license in Greece, according to a Wall Street Journal report citing people familiar with the process.
A senior Greek regulator told Binance that Lagarde wanted the decision delayed until the European Securities and Markets Authority (ESMA) takes over licensing decisions for crypto exchanges under a proposed EU reform that has yet to be adopted, the Journal reported.
MiCA approval is granted by financial regulators of individual EU countries, and approval in one country gives the recipient a license to operate across the bloc. The Wall Street Journal said the ECB is influencing decisions because of concerns over stablecoins and the digital euro. Lagarde was reportedly concerned about Binance's scale as the world's largest crypto exchange and how it could deepen the use of dollar-based stablecoins in the region, potentially undermining the central bank's digital euro project and euro-denominated alternatives.
"We will not comment on speculation," a Binance spokesperson said. "In Europe, Binance remains committed to operating on a long-term, compliant basis under the EU's Markets in Crypto-Assets Regulation (MiCA)." The company said it still intended to pursue a license, adding it was "actively working toward becoming MiCA-authorised."
Binance withdrew its Greek application in mid-June and began winding down operations after officials at the Hellenic Capital Market Commission (HCMC) decided not to approve the license request at the last minute. Gillian Lynch, Binance's head of Europe, told CoinDesk in early July that the exchange had met all of the HCMC's requirements, saying: "We were deemed to have a complete application. Nothing was missing, nothing material was outstanding."
