Binance’s regulatory woes across the European Union (EU) were reportedly driven by political intervention from its central bank, the ECB.
According to a Wall Street Journal (WSJ) report, ECB President Christine Lagarde personally stepped in to block the world’s largest exchange from getting the MiCA license.
The report claimed that Lagarde ordered Greece to stop the approval process, stating that she “wants the Digital Euro to be fit for the future” and raised concerns over USD-based stablecoins.
Digital Euro is the ECB’s central bank digital currency (CBDC) and is set for a test pilot from mid-2027, with an official launch scheduled for 2029. However, Lagarde fears that crypto exchanges are driving stablecoin adoption, a move that could undermine the Digital Euro.
But most importantly, Binance’s 2023 guilty plea for money laundering and sanctions violations in the U.S. also played a role in the MiCA license hiccup.
Can Binance secure a MiCA license by 2027?
MiCA’s transitional period ended on the 1st July, 2026. The political intervention forced Binance to withdraw its initial application with Greece’s regulator (HCMC) in mid-June.
Even so, the exchange maintained that it will reapply for a license from another European country, likely France. Whether it will do so by next year remains unclear.
Currently, MiCA’s licensing and enforcement are conducted by national authorities, with ESMA (European Securities and Markets Authority) acting as oversight and coordinator. However, from 2027, ESMA will be the sole regulator.
In fact, the report claimed that there was a push to delay Binance’s approval until ESMA gains sole authority over crypto across the continent.
Reacting to the update, Binance spokesperson slammed Lagarde’s intervention, stating that MiCA approval shouldn’t be
A process where applicants can be privately undermined through informal channels.
Other analysts also echoed the same view and wondered whether Europe can apply its rules consistently and fairly.
Separately, Binance founder Changpeng Zhao (CZ) wondered why banks are afraid of crypto and blockchains.
Overall, Binance’s MiCA license hiccup in June was not because it didn’t meet key requirements, at least according to the WSJ report. However, the ECB President sees it as a threat to its Digital Euro vision and chose to temporarily block its approval.
Final Summary
- ECB’s Lagarde intervened to stop Binance’s MiCA license approval in Greece, per WSJ
- Lagarde wants Binance blocked until ESMA gains full MiCA authority and oversight role from national authorities
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