Key Takeaways Richard Teng, Binance’s co-CEO, disclosed that 70% of EU user withdrawals transferred to self-custody wallets rather than competing exchanges A mere 30% of withdrawn assets migr
As Binance halted operations for European Union clients before the July 1 MiCA compliance deadline, regulatory authorities likely anticipated users would transition to alternative licensed services. The reality proved quite different.
Speaking at Thursday’s Reuters NEXT Asia summit in Singapore, Binance co-CEO Richard Teng disclosed striking data: approximately 70% of assets withdrawn by European users following the service suspension flowed into self-custodied wallets. Only 30% transferred to exchanges operating under MiCA regulations.
Teng posed a pointed challenge regarding this development. “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,” he stated.
Self-custodial wallets function beyond the regulatory frameworks governing licensed trading platforms. Users face no KYC requirements, no transaction surveillance, and zero consumer safeguards if they lose wallet access.
Binance retracted its Greek MiCA licensing application ahead of the July 1 regulatory transition. According to Teng, the platform withdrew its submission following approval postponements, despite confidence that the application met all compliance requirements.
He explained the withdrawal aimed to prevent subjecting users to an extremely compressed transition period. Last month, Binance founder Changpeng Zhao indicated the application had neared approval before what he characterized as “political forces” interfered.
Nevertheless, Teng emphasized Binance hasn’t abandoned European markets. Multiple EU nations have extended invitations for the exchange to pursue local licensing, though he refrained from identifying specific countries.
Binance is now redirecting resources toward Asian markets. Teng announced plans for “quite aggressive” regional expansion.
The exchange has obtained regulatory approval in Japan, South Korea, Thailand, Indonesia, Australia, India, and Pakistan. It recently commenced Philippine operations via a Blockshow partnership.
Teng anticipates securing additional regional licenses by year’s end.
Regarding regulatory oversight, Teng noted the Financial Services Regulatory Authority in Abu Dhabi conducts comprehensive supervision of Binance’s operations, encompassing governance, AML protocols, KYC procedures, transaction surveillance, and wallet administration following an extensive 18-month evaluation.
Binance’s current user base stands at approximately 323 million globally. The platform estimates worldwide crypto exposure affects roughly 740 million individuals.
The European data revealing most users selected self-custody over regulated alternatives may compel regulators to reassess MiCA implementation strategies across member nations.
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