70% of Binance EU User Withdrawals Moved to Self-Custodied Wallets After MiCA Exit

According to Binance CEO Richard Teng, about 70% of European user withdrawals following the exchange's MiCA-related exit moved to self-custodied wallets rather than regulated rival platforms, while only 30% reportedly went to MiCA-authorized providers.

Binance withdrew its MiCA license application and stopped providing services to European users from July 1 after failing to secure authorization before the regulation deadline. The data, reported by Wu Blockchain and cited by Financial Times and Reuters, underscores a regulatory tension: the landmark EU crypto framework intended to redirect users toward licensed platforms, but the Binance disruption instead pushed most users toward off-exchange self-custody.