CZ Says Political Interference Derailed Binance’s EU MiCA License Bid

Changpeng Zhao, the founder of Binance, said the exchange’s application for a license under the European Union’s Markets in Crypto-Assets regulation, or MiCA, was derailed by political factors just before approval.

The Block reported on June 29 that Zhao said in an interview that two EU countries had tried to host Binance’s MiCA license application, triggering a form of competition. The process proceeded smoothly until just before approval, he said, but was ultimately blocked by other forces.

On speculation that European Central Bank President Christine Lagarde was involved in stopping the approval, Zhao said he had seen the same claims online but that there is no official document to support them.

Binance said last week that it had withdrawn its MiCA license application in Greece and would pursue authorization again in another EU member state. From July 1, the EU will restrict operations by crypto businesses that have not obtained a MiCA license.

Zhao said the situation was a loss for both Binance and Europe, calling it a bad outcome for both sides.