Report: ECB President Christine Lagarde Helped Block Binance's EU Entry
Report: ECB President Helped Block Binance's EU Entry
European Central Bank (ECB) President Christine Lagarde helped stop Binance from operating in the European Union, according to a Wall Street Journal (WSJ) report published on Thursday.
The report says Binance was close to operating in the trading bloc, but was told it could not after the central bank chief intervened, citing interviews with officials.
Key claims from the report
- The WSJ report says Lagarde wanted to keep Binance, which it calls a "controversial crypto exchange," out of the EU.
- The report says Lagarde was worried Binance would help dollar-based stablecoins dominate in Europe instead of euro counterparts.
- Binance is the world's biggest crypto exchange, and billions of dollars in stablecoins are traded on its platform daily.
What this means for Binance in the EU
EU law requires local Crypto-Asset Service Providers (CASPs) to hold a MiCA license. A MiCA license is an authorization under the EU's crypto-asset regulation framework. Binance does not have one.
In June, Binance withdrew its MiCA application in Greece. At that time, Binance said it was still working to pursue MiCA authorization in another EU Member State.
Lagarde's history on bitcoin and CBDCs
Lagarde has a long history of criticism toward bitcoin. In 2021, she called it "a highly speculative asset" used for money laundering. She also criticized cryptocurrencies as a whole and said central banks would never hold bitcoin.
However, Lagarde supports central bank digital currencies (CBDCs), which are digital forms of fiat money like the US dollar or euro. The EU is moving forward with a digital euro. Lagarde has called it key to Europe's financial autonomy and has criticized privately issued stablecoins.
Background on Binance's legal issues
Binance and its CEO, Changpeng Zhao, pleaded guilty to anti-money-laundering violations in 2023 and paid a record $4.3 billion fine.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.