European Central Bank (ECB) President Christine Lagarde personally asked Greek Prime Minister Kyriakos Mitsotakis to reject Binance’s bid for an EU crypto license, The Wall Street Journal reported.

The report says Lagarde raised concerns over Binance’s past US regulatory violations and the risk that wider dollar stablecoin use could weaken the ECB’s planned digital euro.

A License Effort That Stalled Near the Finish Line

Binance applied through Greek regulators for a crypto-asset service provider license under the EU’s Markets in Crypto-Assets framework. The framework lets one member state’s approval cover the entire bloc.

Greek authorities told the European Securities and Markets Authority (ESMA) in early June that they intended to approve the bid.

The exchange had prepared for a formal European launch, including a planned Athens visit by chief executive officer Richard Teng. BeInCrypto reported the initial rejection claim in June, when Binance vowed to pursue a license elsewhere in the bloc.

An official at the Hellenic Capital Market Commission (HCMC), Greece’s securities regulator, then told Binance that Lagarde opposed the application. The Journal attributed the account to people familiar with the discussions.

What Lagarde Reportedly Knew

The Journal says Lagarde’s opposition traced to Binance’s earlier guilty plea to US money-laundering and sanctions violations. She reportedly saw that history as a compliance red flag.

Lagarde’s second worry centered on the ECB’s own digital euro project. She reportedly feared Binance’s entry would accelerate dollar stablecoin adoption in Europe, undercutting that effort.

The ECB holds no formal authority over exchange licensing under MiCA. That power sits with national regulators, and approval in one member state extends across the entire bloc.

Binance withdrew its application in mid-June, before the HCMC reached a formal decision. It also stopped marketing to EU users after missing the July licensing deadline.

Source: BeInCrypto