Binance's CEO says 70% of EU withdrawals went to self-hosted wallets

Signals Inbox·July 6, 2026·Blockchain

Binance says 70% of EU withdrawals went to self-hosted wallets, while only 30% moved to MiCA-regulated platforms. That is a surprising result for rules designed to bring more crypto activity inside regulated companies.

Q1Where does the 70% figure come from?

Richard Teng shared the figure while discussing Binance’s MiCA setback at the Reuters NEXT Asia summit. Binance has not published the underlying withdrawal data, so the number remains a company-reported statistic. Teng explains his broader position in this official post, while Binance describes its European licensing situation in this official update.

Q2What actually happened to Binance in Europe?

Binance did not secure a MiCA licence before the EU transition deadline on July 1, 2026. It therefore had to stop offering most services to EU customers while it searches for another path back into the market. Users could move their crypto to a licensed exchange, sell it, or withdraw it into a wallet they control themselves.

Q3Why is the 70% number surprising?

MiCA was supposed to move European crypto activity toward supervised companies with stronger capital, governance and consumer protection rules. Instead, Binance says only 30% of its withdrawn funds went to regulated platforms. The other 70% moved into self-hosted wallets, where users control the keys and no licensed company holds the assets.

Q4Does this mean MiCA is backfiring?

Possibly, but Binance has an obvious reason to frame it that way. The company failed to obtain a licence, so it wants to show that excluding a large exchange does not automatically help regulated competitors. Still, a 70 to 30 split would support its argument that stricter rules can move activity outside regulated companies instead of bringing it under closer supervision.

Q5How big was Europe’s regulatory cleanup?

Very big. When the final transition ended, only around 12% of the crypto companies previously operating in the EU were approved to continue. Roughly 244 companies had permission, while more than 1,700 faced having to stop operating. Binance was not a small casualty either. It is the world’s largest crypto exchange and says it has more than 300 million users globally.

Q6So what is the real signal?

Europe has successfully reduced the number of unlicensed crypto companies, but it may not be capturing all the users and assets those companies leave behind. If Binance’s numbers are accurate, MiCA is accelerating self-custody more than regulated consolidation. The next thing to watch is whether those funds stay in wallets or eventually return to licensed exchanges once users need to trade.