Binance co-CEO says 70% of EU withdrawals went to self-custody after MiCA deadline, with just 30% going to licensed platforms

Most funds withdrawn by Binance's european users following the exchange's EU service suspension were transferred to self-custodied wallets rather than rival MiCA-regulated exchanges, according to figures shared by Binance co-CEO Richard Teng. He said about 70% moved to self-custody while the remaining 30% went to licensed platforms.

Speaking at the Reuters NEXT Asia summit in Singapore on Thursday, Teng argued the figures raise questions about whether MiCA is serving its intended purpose of reducing risk for users. He noted that assets moved to self-hosted wallets fall outside the oversight, anti-money laundering, and know-your-customer controls that apply to regulated exchanges.

"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," Teng said.

Binance suspended services for affected EU users after withdrawing its MiCA license application in Greece ahead of the bloc's licensing transition deadline on July 1. Teng said the exchange pulled the application after approval delays despite submitting what it believed was a fully compliant filing, arguing that the decision was made to avoid leaving users with a short transition period. 

Last month, Binance founder Changpeng Zhao told The Block the application had been close to approval before what he described as "political forces" intervened, prompting the company to withdraw the filing and pursue authorization in another EU member state.

Expansion plans 

Despite its withdrawal from the bloc, Teng said Binance has not abandoned Europe. He said several EU jurisdictions have invited the exchange to apply for local licenses, although he declined to identify them, adding that Binance would continue working closely with regulators across the region.

Teng also expressed confidence in Binance's regulatory standing, describing it as the only global crypto exchange with a home regulator overseeing its operations end-to-end. 

He said the Financial Services Regulatory Authority in Abu Dhabi supervises the company's governance, AML, KYC, transaction monitoring, listing policies, and wallet management after what he described as an 18-month review process.

Meanwhile, Binance plans to expand "quite aggressively" across Asia. Teng said the exchange is already licensed in Japan, South Korea, Thailand, Indonesia, Australia, India, and Pakistan. He added that the exchange recently launched operations in the Philippines through a partnership with Blockshow and expects to secure additional licenses in the region this year.

Teng also highlighted Binance's recent growth, saying the exchange now serves about 323 million users globally out of roughly 740 million people with crypto exposure worldwide.