Binance Reports 70% EU Withdrawals Move to Self-Custody Following MiCA Rules

Binance's EU Service Changes and User Response

Binance withdrew its MiCA license application in Greece in late June 2026 after facing repeated delays in the approval process. The exchange then stopped onboarding new EU customers as the July 1 deadline passed, prompting existing users to withdraw their assets. Withdrawals remained available during this period.

This development coincided with one of Binance's largest weekly outflows in over three years. According to data shared by the company, the majority of these funds did not transfer to other compliant platforms as might have been anticipated under the new regulatory framework.

Richard Teng's Assessment of the Migration

Speaking at the Reuters NEXT Asia summit in Singapore, Binance co-CEO Richard Teng addressed the outcomes directly. He noted that the shift raises questions about the practical effects of the MiCA framework on user protection and regulatory oversight

Teng, who previously worked in regulation, pointed out that licensed exchanges maintain compliance procedures designed to address money laundering and customer identification. Private wallets operate without these mechanisms, potentially placing activity outside standard monitoring channels.

Context of MiCA Implementation

The EU's Markets in Crypto-Assets regulation aims to create a unified set of rules for crypto service providers across member states. It requires licensing for platforms serving EU users, with the goal of enhancing consumer safeguards and market stability following past industry events.

Binance's decision to withdraw its Greek application stemmed from concerns over a short transition window for users. The company has indicated it remains engaged with European regulators and has received invitations to pursue authorizations in other jurisdictions. Meanwhile, Binance continues its operations globally, reporting around 323 million users.

Broader Implications for Crypto Custody Trends

The reported 70-30 split has drawn attention to user preferences during regulatory transitions. Self-custody allows individuals to control their private keys directly, removing reliance on third-party platforms. This approach gained visibility as users navigated the changes.

Proponents of self-custody often cite reduced counterparty risk compared to leaving assets on exchanges. Past incidents in the industry have underscored the importance of direct asset control for some participants.

At the same time, licensed platforms provide structured compliance and services that many users continue to utilize. The data from this period illustrates a mix of choices among affected individuals.

European authorities have initiated reviews of custody practices under MiCA, examining how the framework performs in practice. Discussions continue on balancing oversight with the operational realities of the market.>

Binance's Global Position and Future Steps

Despite the EU adjustments, Binance maintains a broad international presence. The exchange holds licenses in multiple Asian countries including Japan, South Korea, Thailand, Indonesia, Australia, India, and Pakistan. Recent expansions include operations in the Philippines through a local partnership.

Teng described Abu Dhabi as providing comprehensive oversight for Binance's global operations following an extended review process. The company has expressed commitment to working within regulatory systems where possible while adapting to regional requirements.