Did ECB President Lagarde block Binance’s Greece MiCA application?

Binance’s crypto licensing application in Greece has stalled after what rumors claim is because the regulators received direct orders from the European Central Bank (ECB) President, Christine Lagarde.

Binance’s application, which was made under the Markets in Crypto-Assets (MiCA) regulation, had cleared most of Greece’s regulatory requirements and was on track for approval prior to the ECB president’s intervention.

Did ECB President Lagarde really block Binance’s license application?

Journalist Gareth Jenkinson wrote on X that he was “reliably informed” that the European Central Bank President Christine Lagarde directly ordered Greece to reject Binance’s Markets in Crypto-Assets (MiCA) license application. 

His source added that Binance had pretty much received the green light before the ECB stepped in.

Lagarde is notably anti-stablecoins, whether pegged to the dollar or otherwise. 

Cryptopolitan reported that during the Banco de España LatAm Economic Forum in May, Largade called the argument for euro-denominated stablecoins “far weaker than it appears,” warning they could weaken banks’ ability to lend and the central bank’s ability to control interest rates. 

She cited Circle’s USDC losing its peg during the Silicon Valley Bank collapse in 2023 as evidence that the stablecoin design is structurally fragile.

ECB Executive Board member Isabel Schnabel reinforced that position at a Bank of Korea conference on June 1, arguing that dollar-pegged stablecoins, which account for more than 90% of the $300 billion stablecoin market, would establish American monetary influence through “network effects, scale and first-mover advantages” rather than economic fundamentals. 

When the Brussels-based think tank Bruegel proposed easing the liquidity requirements for crypto issuers and potentially giving them access to ECB funding, central bankers, including Lagarde, pushed back firmly. 

The ECB’s preferred alternative, a central bank digital currency called the digital euro, remains years from launch. A pilot program is not expected until the second half of 2027, and it is unlikely the currency will be launched before 2029. 

What happens to Binance and its EU users now?

With Greece off the table, Binance has turned to France as its remaining path to MiCA authorization. The exchange is in discussions with the Autorité des Marchés Financiers (AMF), though no formal application has been filed. 

MiCA allows firms to offer their services across all 27 member states, even if they are only licensed in one EU country. However, companies without a license at all must stop offering services to EU clients from July 1. France is now considered the only jurisdiction capable of processing a MiCA license within the timeline Binance needs.

Binance CEO Richard Teng addressed user concerns on X on June 16, writing that the exchange is committed to its European users and to operating under a clear, fair, and compliant system 

In a follow-up post, Teng said customer assets “remain secure” and “will remain accessible at all times,” adding that the company would provide further updates before June 30. 

Approximately 90 registered digital asset service providers in France have yet to obtain their MiCA license, and the AMF has warned against companies seeking authorization in member states perceived to have more lenient supervision. 

French authorities also launched an investigation into Binance over suspected money laundering and tax violations related to its activities from 2019 to 2024.