Most EU Binance Withdrawals Went to Self‑Custody, Company Says

Binance reported that up to 70% of funds withdrawn by European Union users after the July 1 Markets in Crypto‑Assets (MiCA) cutoff were transferred to self-custody wallets, while roughly 30% moved to MiCA-authorized platforms. The company described the figures as unaudited and did not provide asset values, user counts, the measurement window or the tracking methodology.

Co‑CEO Richard Teng disclosed the numbers as Binance ended direct custody for accounts it could no longer serve under MiCA rules.

Teng presented the split as evidence that most departing balances bypassed rival regulated exchanges and instead moved into wallets controlled by users. He added that transfers to self-custody can reduce customer support options, limit account recovery possibilities and lower visibility for authorities compared with balances held on supervised platforms.

European regulators required firms without authorization to prepare wind‑down plans before the July 1 deadline. Guidance from the European Securities and Markets Authority listed transfers to an authorized crypto‑asset service provider and transfers to self‑hosted wallets as acceptable outcomes when an intermediary can no longer operate for EU clients.

Binance withdrew an application in Greece and stated it is continuing to pursue an EU authorization route. Any later approval could change future customer flows but would not affect where users sent funds during the cutoff. The company has not supplied audited evidence for the 70/30 split or disclosed the total capital or number of users involved.

Moving funds to self‑custody places responsibility for security, private key management and account recovery on individual users. On‑chain transactions remain traceable, but authorities cannot act at the account level once assets leave a custodian and must rely on blockchain analytics and checks when assets re-enter regulated services.

Some MiCA‑authorized exchanges offered incentives to attract customers leaving platforms that could no longer serve EU clients. Binance’s figures show about 30% of outbound balances moved to authorized platforms.

Industry participants and regulators have called for standardized wind‑down reporting and independent audits to document how much money reaches authorized platforms, self‑hosted wallets or other destinations during market exits.