Binance: Up to 70% of EU Withdrawals Went to Self‑Custody

Binance reported that up to 70% of crypto assets withdrawn by European Union users after the Markets in Crypto‑Assets (MiCA) enforcement date on July 1 were moved to self‑custody wallets, while roughly 30% were transferred to exchanges authorized under MiCA. The company described the split publicly but did not provide underlying data for independent verification.

The figures were presented by Binance co‑chief executive Richard Teng as the exchange exited certain EU markets following the July 1 cutoff. Binance later withdrew an application in Greece and said it is continuing to seek EU authorization. The company did not disclose total asset values, the number of users included in the calculation, the exact measurement window or the tracking methods used to generate the percentages.

European supervisors had told firms without MiCA authorization to execute wind‑down plans when the transition period ended. Guidance from regulators identified two acceptable destinations for assets during a wind‑down: transfer to an authorized crypto‑asset service provider or relocation to a self‑hosted wallet controlled by the user.

Moving assets into self‑custody removes the exchange as the official custodian and places control, security and recovery responsibility with individual users. On‑chain transactions remain visible to observers, and regulators can trace activity and perform checks when assets return to supervised venues, but account‑level intervention at the exchange is no longer possible once custody shifts to a user wallet.

Teng warned that funds moved into self‑custody can mean reduced customer support, fewer recovery options and lower visibility for authorities compared with large supervised platforms. He also noted that a later EU approval for Binance could change future flows but would not alter where users sent funds around the July 1 cutoff.

Several MiCA‑authorized exchanges offered promotional incentives to attract customers leaving platforms that could no longer serve EU clients. Binance’s reported 30% share for regulated destinations indicates that, in the company’s numbers, a minority of withdrawn balances went to authorized rivals during the measured period.

Binance did not make raw transaction logs or methodology available for external review. Regulators and market observers have said that standardized wind‑down reporting would provide clearer data on how much value moves to authorized platforms, self‑hosted wallets or other destinations when intermediaries exit a market.