In Europe, the Binance case takes an unexpected institutional turn. According to an investigation by the Wall Street Journal, Christine Lagarde would have personally weighed in to block the obtaining of a MiCA link by the exchange in Greece. This intervention is all the more sensitive as the ECB has no official power to issue these approvals. Two major issues are emerging behind this standoff: the place of dollar-backed stablecoins in Europe and the future architecture of crypto supervision within the Union.
In brief
- Christine Lagarde would have intervened to slow down Binance’s MiCA license in Greece.
- Binance claims its file was complete before the process was blocked.
- However, the ECB has no formal power to issue MiCA licenses.
- Stablecoins backed by the dollar would be at the heart of the concerns attributed to Lagarde.
- Binance maintains its goal of obtaining MiCA authorization to operate in Europe.
In Greece, Binance’s license application was stopped at the last moment
According to the Wall Street Journal, a senior Greek official told Binance that Christine Lagarde would like to delay the decision on her file until a probable reform transferring the power to issue authorizations to the European Securities and Markets Authority (ESMA).
Indeed, the current MiCA regime relies on national authorities. Thus, a license obtained in a Member State can then allow a service provider to offer its services throughout the European Union.
Following the Hellenic Capital Market Commission’s last-minute decision not to approve it, Binance withdrew its Greek application in mid-June. Additionally, the exchange has started scaling back its operations.
At the beginning of July, Gillian Lynch, Europe manager of Binance, assured that the procedure was at an advanced stage. She has declared : “our file was deemed complete”before emphasizing: “nothing was missing, no important item was pending”.
The main elements of the regulatory sequence can be summarized as follows:
- Binance had filed an application for MiCA authorization in Greece, with the HCMC;
- The file was considered complete, according to Gillian Lynch’s statements;
- The request was finally withdrawn in mid-June, after the Greek regulator’s last-minute refusal;
- The ECB does not have formal power to issue these licenses, which is currently the responsibility of national authorities.
The ECB recalled that the institution played no institutional role in the authorization of crypto service providers.
The ECB would be concerned about the growing weight of stablecoins in dollars
The intervention attributed to Christine Lagarde would not be linked exclusively to the administrative file of the Binance exchange. According to the information reportedthe president of the ECB would have feared that the size of the exchange platform would favor the use of dollar-backed stablecoins in Europe. This progression is likely to compete with the digital euro project as well as alternatives denominated in the single currency.
Such a monetary dimension gives the file a different scope. Binance is not only a candidate for a MiCA license. Its presence and scale can weigh on crypto uses within the European market.
Additionally, ESMA has reportedly privately recommended that national regulators reject the applications filed by Binance, due to concerns over its compliance history.
Binance’s regulatory past continues to weigh on its European strategy
The European questions come after several difficult years for Binance in the regulatory field. Changpeng Zhao pleaded guilty in the United States in 2023 to violating the Bank Secrecy Act. Binance agreed to pay $4.3 billion in fines. Its founder then served a four-month prison sentence in California in 2024, before being pardoned by President Donald Trump in October 2025.
Faced with the revelations concerning Greece, Binance adopts a cautious line. The company nevertheless maintains its European objective: “in Europe, Binance remains committed to operating for the long term and in full compliance with the European Crypto Asset Markets Regulation (MiCA)”. She adds : “We are actively working towards obtaining our MiCA approval, which we see as an essential step in providing our users with a seamless, regulated and trusted service across the European market”.
If the intervention is confirmed, it would illustrate the political weight that an institution lacking formal approval powers can exert when the issues concern monetary sovereignty. It also fuels the debate on a possible centralization of licenses with the ESMA. For Binance, the objective remains unchanged: obtain MiCA authorization and preserve its access to the European market despite regulatory liabilities which continue to follow the platform.
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