Binance CEO reports 70% of EU user withdrawals moved to self-custodied wallets after MiCA exit, questioning regulatory effectiveness.
Regulation & Gov ·
Binance CEO Richard Teng reported that approximately 70% of funds withdrawn by European Union users following the exchange's service suspension moved to self-custodied wallets, with the remaining 30% flowing to MiCA-compliant regulated platforms. The withdrawal pattern emerged after Binance halted operations in the EU due to licensing requirements under the Markets in Crypto-Assets Regulation.
Teng characterized the migration toward self-custody as indicative of potential gaps in MiCA's consumer protection framework, noting that self-hosted wallets operate without the regulatory oversight applied to licensed exchanges. The observation raises a structural tension: regulatory licensing requirements may inadvertently push retail users toward custodial arrangements that fall entirely outside supervisory scope.
The status of Binance's regulatory path in Europe remains fragmented. Several EU jurisdictions have extended invitations for the exchange to apply for local licenses, while the company simultaneously pursues expansion in Asia. Whether Binance will pursue individual EU jurisdictional licenses or challenge MiCA's licensing structure remains unspecified.