Binance Says MiCA Pushed 70% of Exiting EU Users Into Self-Custody

Binance says most exiting EU funds went to self-custody

Speaking at the Reuters NEXT Asia summit in Singapore, Binance chief executive Richard Teng said about 70% of the funds withdrawn by European Union users moved into self-custody wallets. The remaining 30% went to platforms licensed under the Markets in Crypto-Assets (MiCA) regulation, the EU's crypto rulebook. Binance is the world's largest crypto exchange by trading volume. European Union users began moving funds after Binance halted its regional services this month.

Teng says self-custody sits outside MiCA's reach

Self-custody wallets sit outside the regulatory perimeter that MiCA was built to create. The EU designed the framework to bring crypto platforms under identity checks, capital requirements, and transaction monitoring. A user who holds their own keys avoids the identity and monitoring checks that licensed exchanges must run. Once assets move into a private wallet, those controls no longer apply. Teng framed the 70% figure as an unintended result of the rules. He questioned whether the framework meets its stated goal of lowering user risk.

"Does the MiCA regime then serve its purpose to make sure that you minimize risk for the users because once it goes into self-hosted wallet, the risk actually amplified", 9 July 2026. — Richard Teng, CEO, Binance

Binance withdrew its MiCA licence bid in Greece

Binance suspended services for affected EU users after withdrawing its MiCA licence application in Greece. The exchange pulled the filing ahead of the bloc's licensing transition deadline on 1 July 2026. That deadline required platforms serving EU customers to hold a MiCA licence or stop operating in the region. Binance has said its submission was fully compliant and blamed approval delays for the withdrawal. A MiCA licence in one member state lets a platform serve customers across the bloc.

Teng says Binance serves 323 million users

Teng said Binance now serves about 323 million users worldwide. He put the number of people with any crypto exposure globally at roughly 740 million. Both figures came from the exchange and were not independently confirmed. Teng shared them while pointing to the exchange's growth beyond Europe. He said Asia now drives much of that expansion.

The exchange holds licences across several Asian markets

Teng said Binance holds licences across several Asian markets. He named Japan, South Korea, Thailand, Indonesia, Australia, India, and Pakistan. The comments came as the exchange leaned on Asian growth after its EU retreat. Teng said some regulators had encouraged Binance to seek local licences.

BNB traded near $575 at the time of publication

BNB, the token tied to the exchange, traded at $574.78 at the time of publication, down 0.4% over the past 24 hours (CoinPaprika, 11 July 2026). Its market value stood near $77.5 billion. Trading volume in BNB reached about $407 million over the same 24-hour window (CoinPaprika, 11 July 2026). The token trades about 58% below its October 2025 record high.