European Union · Wall Street · CoinDesk
The ECB is influencing decisions because of concerns over stablecoins and the digital euro, the Wall Street Journal said
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◎ Multiple-sources
Lagarde was concerned that Binance’s scale as the world's largest crypto exchange might deepen the use of dollar-based stablecoins in the region, undermining the central banks' digital euro project and euro-denominated alternatives.
Key facts
- Changpeng "CZ" Zhao, the founder of Binance, pleaded guilty in the U.S. in 2023 to violating the Bank Secrecy Act (BSA) and agreed to pay $4.3 billion in fines
- A senior Greek regulator told Binance that Lagarde wanted the decision delayed until the European Securities and Markets Authority (ESMA) takes over licensing decisions for crypto exchanges
- MiCA approval is granted by the financial regulators of individual European Union (EU) countries
- The ECB is influencing decisions because of concerns over stablecoins and the digital euro, the Wall Street Journal said
Summary
European Central Bank President Christine Lagarde personally intervened to delay Binance’s bid for a European Union crypto license in Greece, The Wall Street Journal reported. Lagarde was reportedly concerned that Binance could expand the use of dollar-based stablecoins, potentially undermining the digital euro and euro-denominated alternatives. Binance withdrew its Greek application in June, and said it still plans to seek authorization under the European Union’s Markets in Crypto-Assets rules. European Central Bank President Christine Lagarde personally intervened to prevent crypto exchange Binance from obtaining a Markets in Crypto-Assets (MiCA) license in Greece, according to a Wall Street Journal report that cited people familiar with the process. A senior Greek regulator told Binance that Lagarde wanted the decision delayed until the European Securities and Markets Authority (ESMA) takes over licensing decisions for crypto exchanges under a proposed EU reform that has yet to be adopted, the Journal reported.