CZ Says Politics, Not Compliance, Played a Role in Binance’s MiCA Application Withdrawal

• CZ says he saw no proof Christine Lagarde personally blocked Binance’s MiCA application in Greece.
• He claims politics, not compliance, changed the outcome after the application neared approval.
• Binance withdrew its Greece filing but plans to continue pursuing MiCA approval elsewhere in the EU.

Binance founder Changpeng “CZ” Zhao has commented on the exchange’s decision to withdraw its Markets in Crypto-Assets (MiCA) license application in Greece. 

He said he has seen no evidence that European Central Bank President Christine Lagarde personally blocked the process. However, he believes political factors, rather than compliance issues, played a role.

CZ Says There Is No Proof Christine Lagarde Intervened

During the interview, CZ was asked about reports from anonymous sources claiming ECB President Christine Lagarde intervened to stop Binance’s MiCA application in Greece.

He said he had seen the same claims circulating online but had no direct or verifiable evidence that Lagarde was involved.

CZ also noted that he no longer manages Binance’s day-to-day operations. However, as the company’s ultimate beneficial owner (UBO), he spoke with Binance’s team about the application.

Based on those discussions, he said the application had reached an advanced stage. According to CZ, at least one or two European regulators told Binance its MiCA application was fully compliant and close to approval before the situation changed.

Politics, Not Compliance, Reportedly Changed the Outcome

CZ said the issue appeared to go beyond regulatory compliance. According to his understanding, two European Union member states wanted Binance to establish its MiCA headquarters within their jurisdictions. Hosting the exchange could have brought tax revenue and supported the growth of their local crypto industries.

He described the situation as a “bidding war” between countries competing to host Binance. However, he said political forces outside those jurisdictions ultimately worked against the approval.

Binance then concluded that approval through Greece had become unlikely. The company decided to withdraw the application and pursue authorization through another EU member state instead.

Binance Will Continue Pursuing Regulatory Approvals

CZ said he expects Binance to keep working with regulators worldwide and continue seeking licenses in major markets. He acknowledged that the process is often complex.

He pointed to Japan as an example. Binance first faced regulatory warnings from Japanese authorities in 2018. After years of engagement with regulators, the exchange secured approval to re-enter the market. By early 2023, Binance had obtained a full Japanese license and now operates legally in the country.

CZ also referenced Singapore, where Binance withdrew from the market in late 2021 after regulatory challenges. He noted that many users later moved to FTX, which eventually collapsed. In his view, that outcome ultimately hurt investors.

CZ Says Europe Also Loses From Binance’s Withdrawal

Looking ahead, CZ said he believes Binance can eventually overcome its latest regulatory challenge in Europe, just as it has in other jurisdictions.

He acknowledged that politics can sometimes influence regulatory decisions, especially for a company as large as Binance.

While describing the withdrawal as a setback for Binance, CZ argued that Europe also loses by not having one of the world’s largest cryptocurrency exchanges operating under its regulatory framework.

He added that Binance remains one of the industry’s most heavily scrutinized exchanges. He also believes it is among the most compliant and expressed hope that the issue can eventually be resolved.

Related: Binance Pledges to Stay in Europe After Failing Greek License Bid