Lagarde Blocked Binance in Greece, France Next?

Binance's bid for a European Union license through Greece has collapsed. Multiple reports said European Central Bank President Christine Lagarde pushed Athens to reject the application, the latest regulatory setback for the world's largest crypto exchange.

The exchange applied for approval under the Markets in Crypto-Assets (MiCA) framework through the Hellenic Capital Market Commission in early 2024. Lagarde personally lobbied Greek officials to block the move, according to those reports, which cited people familiar with the matter. The ECB declined to comment. Binance did not respond to a request for comment by press time.

MiCA took full effect in 2024. It requires crypto firms to secure a license from one national regulator to passport services across all 27 EU member states. Athens was seen as a friendlier venue than Paris or Berlin, where regulators have taken a more cautious stance. Lagarde has repeatedly called for strict oversight of digital assets, arguing they pose risks to financial stability and facilitate illicit finance.

Binance is not retreating from Europe. The exchange has turned to France, where the Autorité des Marchés Financiers (AMF) is weighing a separate MiCA application. Binance already operates a registered Digital Asset Service Provider in France, granted in 2022 under the country's existing framework. A MiCA license would supersede that registration and allow Binance to offer services across all 27 member states without further national approvals.

France represents a high-stakes test. The AMF has approved several crypto firms under MiCA, including exchanges and custodians. Binance is a larger, more complex applicant. French officials have not publicly signalled their lean. A decision is expected in the coming months.

The stakes extend beyond the MiCA bid. Binance lost its UK registration in 2021, pulled out of the Netherlands and Cyprus, and faces ongoing legal scrutiny in the United States. Europe is one of its largest revenue pools after Asia. Without a passportable EU license, the exchange's ability to retain regional customers and banking partners will erode.

The MiCA framework itself is still being tested. Greece, before the Binance rejection, had approved licenses for smaller firms but had not yet processed a major exchange application. French approval would set a precedent. French rejection would force Binance to look elsewhere – potentially to Malta, which has positioned itself as a crypto hub, or to Italy, where regulatory attitudes have been mixed.

The outcome in Paris will also shape how other large exchanges approach MiCA. Coinbase and Kraken have already obtained MiCA licenses through Ireland and Germany respectively. If France says no, Binance's European strategy could stall for years.

No public timetable exists for the French decision. The AMF continues to evaluate the application.