Union

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Binance CEO Richard Teng said around 70% of cryptocurrency withdrawn by affected European Union users following the exchange’s MiCA-related service changes was transferred to self-custodied wallets instead of rival regulated platforms, suggesting many customers opted to retain direct control of their digital assets during the regulatory transition.
Speaking at the Reuters NEXT Asia conference in Singapore, Teng said only about 30% of withdrawals moved to other exchanges licensed under the European Union’s Markets in Crypto-Assets (MiCA) framework. The figures have not been independently verified but provide one of the first company-reported insights into how users responded after Binance scaled back certain services in the EU.
The withdrawals followed what many have described as the <a href="https://cryip.co/okx-ceo-rejects-cz-binance-mica-failure-europe-loss/" rel="noopener noreferrer nofollow">Binance MiCA failure</a>, after the exchange withdrew its MiCA license application in Greece in June because regulatory approval was not secured before the July 1 compliance deadline, delaying its efforts to obtain a <a href="https://cryip.co/binance-to-suspend-eu-services-from-july-1-after-missing-mica-licence-deadline/" rel="noopener noreferrer nofollow">Binance MiCA licence</a> through another European Union member state. As a result, some European users were required to withdraw assets while the company pursues authorization through another EU member state.
<h2 id="self-custody-outweighed-exchange-migration">Self-custody outweighed exchange migration</h2>
The reported migration pattern differs from expectations that customers would simply move their assets to competing regulated exchanges. Instead, according to Teng, most affected users transferred funds to wallets where they control the private keys rather than leaving assets on another centralized trading platform.
Key highlights:
<ul>
 <li>Binance says approximately 70% of affected EU withdrawals moved to self-custodied wallets.</li>
 <li>Around 30% of withdrawn assets were transferred to MiCA-regulated exchanges.</li>
 <li>Binance continues discussions with regulators in several EU countries regarding a future license.</li>
 <li>The exchange says it intends to return to the European market once regulatory approval is obtained.</li>
</ul>
Although Binance did not disclose the total value of the withdrawals represented by the 70% figure, the data suggests self-custody became the preferred option for many users navigating the regulatory change.
<h2 id="mica-faces-an-early-real-world-test">MiCA faces an early real-world test</h2>
The development offers an early indication of how Europe’s new crypto regulations may influence user behavior. MiCA was introduced to establish a unified regulatory framework for crypto service providers across the European Union, with goals including stronger consumer protections, greater transparency and consistent licensing standards.
However, Binance’s reported data indicates that many users chose to move assets outside centralized custody rather than immediately transferring them to another regulated exchange. The findings come as <a href="https://cryip.co/uk-investors-sue-binance-cz-150m-unauthorised-crypto-derivatives/" rel="noopener noreferrer nofollow">UK investors sue Binance</a> in a separate legal case over alleged unauthorized crypto derivatives, underscoring that the exchange continues to navigate multiple regulatory and legal challenges beyond its MiCA-related licensing efforts in Europe.
That does not necessarily signal dissatisfaction with MiCA itself. Many crypto investors routinely use self-custodied wallets to maintain full ownership of their assets while waiting for regulatory clarity or deciding which platform to use next.
The trend also reflects the growing role of self-custody in the digital asset ecosystem, particularly among experienced users who prefer managing their own wallets instead of relying on third-party custodians.
<h2 id="what-traders-should-watch">What traders should watch</h2>
While the reported shift is unlikely to have an immediate effect on cryptocurrency prices, it could influence how assets circulate within the European market.
Several factors will be worth monitoring in the coming months:
<ul>
 <li>Whether self-custodied users eventually return to centralized exchanges after Binance secures a new EU license.</li>
 <li>How much market share licensed exchanges gain from Binance’s reduced European presence.</li>
 <li>Whether wallet usage and decentralized finance activity increase as more users hold assets independently.</li>
 <li>How European regulators evaluate the impact of MiCA on custody preferences and investor protection.</li>
</ul>
The reported 70% figure remains based on Binance’s internal data and has not been independently audited. Even so, it represents one of the first measurable indicators of how Europe’s landmark crypto regulation is reshaping custody decisions. As Binance continues pursuing regulatory approval and <a href="https://cryip.co/binance-says-mica-should-be-judged-by-licensed-firms-not-exclusions/" rel="noopener noreferrer nofollow">MiCA licensed firms</a> expand their services across Europe, the balance between regulated platforms and self-custody is likely to remain a key theme in the evolution of the region’s digital asset market.

Binance CEO Says 70% of EU Crypto Withdrawals Now Go to Self-Custodied Wallets After MiCA

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