Binance CEO Says 70% Of EU Withdrawals Went To Self-Custody After MiCA Exit

Binance CEO Richard Teng said 70% of funds withdrawn by European users after the exchange’s MiCA setback moved to self-hosted wallets, while 30% moved to MiCA-regulated platforms.

The split puts a hard number on the custody shift that followed Binance’s loss of a clear EU route before the July 1 deadline. Teng said 70% of withdrawn funds went to self-hosted wallets after users moved assets off the platform, leaving regulated European exchanges with a smaller share of the outflow.

The figures turn Binance’s MiCA problem into a wider test of Europe’s consumer-protection framework. MiCA pushes crypto activity toward licensed Crypto-Asset Service Providers, but the Binance withdrawal pattern suggests many users chose direct wallet control instead of moving to a supervised exchange.

Binance had already told affected European users that assets remained safe and that withdrawals would stay available after the July 1 cutoff. The exchange also said user options would depend on country and account status.

MiCA Deadline Forces Exchange Access Reset

Binance withdrew its MiCA application in Greece on June 24 and said it would pursue authorization in another EU member state. A Greek authorization would have allowed the exchange to serve clients across the bloc through MiCA passporting.

Without that license, Binance moved into service restrictions for EU users after the transition deadline. The exchange had already prepared users for a July 1 access change, with affected clients told how to withdraw funds as Binance prepared to stop serving EU clients under the old national-registration route.

ESMA’s end-of-transition statement required unauthorised crypto-asset service providers to wind down EU activities, stop onboarding new EU clients, limit activity to asset transfers or position closures and keep AML controls in place during the exit.

That framework gives licensed exchanges a regulatory advantage, but it does not force users to keep assets on centralized platforms. Self-hosted wallets remain an allowed exit path, while users carry their own backup, signing and key-management risk.

Licensed Rivals Compete For Migrating Users

The Binance shift has intensified competition among MiCA-authorized exchanges. Coinbase and OKX moved early with MiCA deadline bonuses as Binance users reassessed where they could trade, custody assets and keep euro access under the new EU regime.

OKX Europe said client activity rose before the cutoff, while Kraken, Coinbase, Bybit, Crypto.com, Gate and Bitstamp became part of the liquidity fight among regulated venues. The split has already started to show in order books, with Kraken leading MiCA exchange liquidity after the July 1 deadline hardened the gap between licensed and restricted platforms.