Binance Says Most EU Users Moved Funds to Self-Custody After MiCA Exit

Binance co CEO Richard Teng revealed that around 70% of funds withdrawn by European users following the exchange’s EU service suspension were moved into self-custodied wallets, while only 30% went to platforms regulated under the EU’s MiCA framework. Teng shared the figures during a session at the Reuters NEXT Asia summit in Singapore.

Questioning MiCA’s Effectiveness

Teng argued the numbers raise doubts about whether MiCA regulation is achieving its intended goal of reducing risk for crypto users. He pointed out that funds moved into self-hosted wallets fall outside the oversight, anti-money laundering checks and identity verification standards required of regulated exchanges, suggesting the shift may actually increase user risk rather than reduce it.

Background on Binance’s EU Withdrawal

Binance suspended services for affected EU users after withdrawing its MiCA license application in Greece ahead of the bloc’s licensing deadline on July 1. Teng said the exchange pulled its application following delays in approval, despite believing its filing was fully compliant, and chose to withdraw rather than leave users with a limited transition window. Binance founder Changpeng Zhao previously said the application had been close to approval before what he described as political interference disrupted the process, prompting the company to seek licensing elsewhere in the EU.

Binance Still Eyes European Expansion

Despite exiting the bloc, Teng said Binance has not given up on Europe, noting that several EU countries have invited the exchange to apply for local licenses. He declined to name specific jurisdictions but said the company remains committed to working with regulators across the region.

Regulatory Standing and Asia Growth Plans

Teng highlighted Binance’s oversight by Abu Dhabi’s Financial Services Regulatory Authority, which he said supervises the company’s compliance, governance and operational practices following an extensive review process. He also outlined plans for aggressive expansion across Asia, noting existing licenses in several countries and a recent launch in the Philippines. Teng said Binance now serves roughly 323 million users out of an estimated 740 million people globally with exposure to cryptocurrency.