TheBlock
Binance co-CEO Richard Teng said 70% of European user funds withdrawn from the exchange following its EU service suspension moved to self-custodied wallets, with the remaining 30% transferred to MiCA-regulated platforms.
Why it matters
The split inverts the assumption that a regulated framework would primarily redistribute flow toward licensed competitors. Instead, the dominant behavior was users taking direct control of their assets, a signal that the cost and friction of MiCA compliance for platforms may be pushing retail toward non-custodial alternatives rather than toward the regulated venues the framework was designed to favor.
Market impact
Self-custody adoption at this scale tightens the addressable liquidity on regulated EU venues and reduces the data footprint exchanges can use for compliance and product development. Watch whether the 30% to MiCA-licensed platforms concentrates among a small number of dominant venues or fragments, and whether on-chain volumes out of Europe accelerate relative to centralized exchange flows.
Frequently asked questions
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Why did Binance suspend services in the EU?
Binance stopped offering certain products and services to users in the European Economic Area as the bloc's Markets in Crypto-Assets regulation (MiCA) took full effect, since some of its offerings did not meet the new licensing and compliance requirements.
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What did Richard Teng say about EU user withdrawals?
Binance co-CEO Richard Teng said 70% of European user funds withdrawn from the exchange after the EU service suspension moved to self-custodied wallets, with the remaining 30% transferred to MiCA-regulated platforms.
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Does the 70% self-custody figure include all EU Binance users?
Teng did not disclose the absolute euro amount behind the percentages. The 70/30 split refers only to the flow of funds withdrawn by EU users following the suspension, not the total EU user base on the platform.
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What is MiCA and what does it require?
MiCA is the European Union's Markets in Crypto-Assets regulation, a harmonized framework covering crypto-asset issuers, service providers, and stablecoins. It requires firms serving EU customers to be authorized, meet capital and governance standards, and comply with disclosure and consumer protection rules.
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What does high self-custody adoption mean for MiCA-licensed exchanges?
If retail migrates to self-custody at scale, regulated EU venues face thinner liquidity, fewer behavioral data points for compliance, and a smaller addressable market for products that depend on exchange-held balances.
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