Binance says 70% of EU users moved to self-custody wallets

Following the suspension of its services for European Union users ahead of a key regulatory deadline, the majority of withdrawn funds have flowed into self-custodied wallets rather than to other licensed exchanges, according to data shared by Binance co-CEO Richard Teng. The revelation raises questions about the effectiveness of the EU's new Markets in Crypto-Assets (MiCA) framework in its goal of channeling users toward regulated platforms.

Speaking at the Reuters NEXT Asia summit in Singapore on Thursday, July 9, 2026, Teng disclosed that approximately 70% of assets withdrawn by EU users after the service suspension went into self-hosted wallets. Only 30% migrated to exchanges operating under MiCA regulations. Teng directly questioned whether the regulatory regime is achieving its consumer protection objective, noting that assets moved to self-custody fall outside the oversight, anti-money laundering, and know-your-customer controls that apply to licensed platforms.

Binance suspended services for affected EU users after withdrawing its application for a MiCA license in Greece ahead of the bloc's July 1 compliance deadline. Teng stated the exchange pulled the application due to...