- President of the ECB, Christine Lagarde, is said to have warned Greek authorities against issuing a pan-European crypto license to Binance.
- The issues included the track record of Binance in the US and the future possibilities of dollar-based stablecoins.
Binance had spent more than a year trying to establish a presence in Europe through Greece’s crypto licensing process. Binance submitted its application shortly before the end of 2025, according to The Wall Street Journal. Greek regulators said later that they would approve Binance’s application in early June.
The company was preparing for a major announcement in Europe and an Athens trip. Binance CEO Richard Teng would also meet as part of the plans to expand into Greece. This move was a response to the importance of Greece under the European Union’s Markets in Crypto Assets regime. One license from an EU member country allows certain companies to operate in the entire bloc. In addition to providing economic benefits to Greece, Binance claimed tax revenue and job creation. The firm estimated that its European operations would bring the country about €200 million in tax revenue. Binance would also create about 100 high-paying local jobs.
Binance had to alter its plan after Greek officials reportedly warned the firm about Lagarde’s position on the matter. As per people familiar with the developments, Lagarde personally lobbied against Binance’s plan. Lagarde reportedly cited Binance’s financial crimes in the past.
Regulatory Issues Clash with Stablecoin Policy
The crypto exchange pleaded guilty in the US in 2023 to money laundering and sanctions violation charges. This settlement entailed $4.3 billion in fines and the need for more rigorous compliance oversight. Another issue was mentioned in The Journal in connection with dollar-backed stablecoins and the European digital euro project. According to Lagarde, Binance’s expansion could result in broader dollar stablecoin usage in Europe. This is an issue connected to the digital euro development program run by the ECB.
Nevertheless, it should be noted that the ECB does not officially grant crypto exchange licenses under MiCA. The licensing procedure in accordance with EU laws falls on national regulators; thus, the Hellenic Capital Market Commission of Greece licensed Binance.
Binance Withdraws Before Formal Rejection
Binance decided to withdraw its application in Greece before any official rejection was made. It had also ceased advertising its services in EU countries since it missed the licensing deadline. This situation brings out some of the regulatory issues that crypto exchanges and stablecoin issuers face in Europe. Under MiCA, national authorities are granted the licensing powers, while European bodies continue formulating policies in the finance sector.
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