TLDR
- Binance co-CEO Richard Teng revealed 70% of EU user withdrawals went to self-custody wallets, not rival exchanges
- Only 30% of withdrawn funds moved to MiCA-licensed platforms after Binance suspended EU services
- Binance pulled its MiCA license application in Greece before the July 1 deadline after approval delays
- Teng questioned whether MiCA is achieving its consumer protection goals given the self-custody migration
- Binance is now expanding aggressively in Asia, already licensed in seven countries
When Binance suspended services for EU users ahead of the MiCA licensing deadline on July 1, regulators may have expected users to simply move to other licensed platforms. That did not happen.
🔥BINANCE CEO: 70% OF BINANCE EU USERS FLEE TO SELF-HOSTED WALLETS AFTER MICA
Richard Teng says of users who withdrew from Binance after MiCA took effect, 70% of those funds went to self-hosted wallets while only 30% flowed to regulated platforms.
“Once it goes into a… pic.twitter.com/UTBPrjOfA6
— Coin Bureau (@coinbureau) July 9, 2026
Binance co-CEO Richard Teng revealed at the Reuters NEXT Asia summit in Singapore on Thursday that roughly 70% of funds withdrawn by EU users after the suspension went into self-custodied wallets. Just 30% moved to MiCA-regulated exchanges.
Teng raised a direct question about this outcome. “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 said.
Self-custody wallets operate outside the oversight systems that apply to licensed exchanges. There is no KYC, no transaction monitoring, and no consumer protection if a user loses access to their funds.
Why Binance Left the EU
Binance withdrew its MiCA license application in Greece before the July 1 transition deadline. Teng said the exchange pulled the application due to approval delays, even though it believed its filing was fully compliant.
He said the decision was made to avoid leaving users with a very short transition window. Binance founder Changpeng Zhao said last month that the application had been close to approval before what he described as “political forces” intervened.
Despite the exit, Teng said Binance has not given up on Europe. Several EU member states have invited the exchange to apply for local licenses, though he declined to name them.
Asia Expansion Picks Up Speed
Binance is now shifting focus to Asia. Teng said the exchange plans to expand “quite aggressively” across the region.
Binance is already licensed in Japan, South Korea, Thailand, Indonesia, Australia, India, and Pakistan. It recently launched operations in the Philippines through a partnership with Blockshow.
Teng expects more regional licenses to be secured before the end of the year.
On the regulatory side, Teng said the Financial Services Regulatory Authority in Abu Dhabi oversees Binance’s operations end-to-end, covering governance, AML, KYC, transaction monitoring, and wallet management following an 18-month review.
Binance currently serves around 323 million users globally. The exchange estimates roughly 740 million people worldwide have some form of crypto exposure.
The EU data showing most users chose self-custody over regulated platforms may put pressure on regulators to reconsider how MiCA is being implemented across member states.
