European Central Bank President Christine Lagarde directly intervened to prevent Binance from securing an EU-wide crypto asset license through Greek regulators. The exchange failed to obtain the license before the new EU regulation deadline, forcing it to suspend promotional activities targeting the bloc's 450 million residents.
Sources familiar with the matter revealed that senior officials at the Hellenic Capital Market Commission informed Binance in early June that Lagarde had asked Greek Prime Minister Kyriakos Mitsotakis to withhold approval of the license application. Reasons cited included the exchange's admission of financial crime violations in the United States. Regulators indicated the process could not advance without prime ministerial backing, prompting Binance to withdraw its application in mid-June.
Just weeks earlier, the company had been preparing to announce its European expansion via Greece at the end of May. A press release was finalized, CEO Richard Teng planned to travel to Athens for a photo opportunity with the prime minister, and local deputies were ready to sign an office lease. Those plans collapsed.
Failing to secure the license before the July deadline for the EU's Markets in Crypto-Assets Regulation (MiCA), the exchange was compelled to stop marketing its services to EU consumers. Founder Changpeng Zhao expressed disappointment on social media, lamenting the bloc's disconnect from what he termed the world's best liquidity.
The ECB holds no formal approval authority under MiCA, as licensing decisions fall to national regulators, with coordination by the European Securities and Markets Authority. However, Lagarde has broadly engaged in policy matters during her tenure. ESMA has also privately advised national regulators to block Binance applications based on its compliance record.
In 2023, Binance and Zhao admitted to anti-money laundering violations, paying $4.3 billion in penalties. U.S. President Donald Trump pardoned Zhao in October last year. More recently, the U.S. Department of Justice investigated allegations that Iran used Binance to evade sanctions, though the company's spokesperson stated the civil case did not allege any misconduct by the exchange and emphasized its zero-tolerance policy toward sanctions violations.
The Greek initiative began over a year ago, driven by the strategic benefit of establishing a presence in an EU member state to access the entire single market. Company executives noted the Greek base would generate 200 million euros in tax revenue and create 100 well-paid local jobs. Binance submitted its application in late 2025 and established a local entity named Binary Greece.
In early June, Greek officials informed ESMA's digital finance committee of their intention to approve the license. Within a day, the deputy head of the Greek commission relayed Lagarde's request to the prime minister. According to the deputy, Lagarde sought to delay the decision until ESMA assumed responsibility for crypto exchange licensing from national authorities, aiming to protect the ECB's "digital euro" project amid concerns that Binance's scale would reinforce the dominance of dollar-backed stablecoins in Europe. Lagarde stated in February her desire for the euro to adapt to the future and for the project to become part of her legacy.
The Greek commission maintains its independent assessment of the application, based solely on applicable EU and national requirements. ESMA says it collaborates with national authorities to ensure consistent rule application and reduce regulatory arbitrage risks. A senior advisor to the Greek finance ministry insisted the government played no role in evaluating the application.
Binance has announced it will pursue the EU license elsewhere. A spokesperson criticized the process, stating that MiCA should not become a system where applicants are privately undermined through informal channels. Meanwhile, the exchange continues to serve some European clients from Abu Dhabi, reaffirming its commitment to long-term compliant operations in the EU.