Binance Exit Triggers 70% of EU Users to Shift Funds to Self‑Custody Wallets

Binance withdrew its Markets in Crypto‑Assets (MiCA) licence application in Greece and announced it would cease offering crypto services to EU users after 1 July 2026, effectively exiting the European Economic Area. Co‑CEO Richard Teng said that about 70 % of the displaced users moved their assets to self‑custody wallets, while only 30 % transferred to platforms that have obtained MiCA authorisation. Data from DeFiLlama and CryptoQuant show net outflows of roughly $1.2 billion in the week of 29 June and stablecoin withdrawals of around $3 billion in the same period.

Binance stresses it remains in “close talks” with EU regulators and is exploring new licence applications in other member states. The exchange is also expanding its footprint in Asia, highlighted by a partnership to launch services in the Philippines. Meanwhile, the European Commission has launched a review of MiCA, aiming to adapt the framework to tokenised securities and stablecoins, with a consultation open until 30 September and expected conclusions in 2027.

The shift to self‑custody wallets raises concerns for regulators, who argue that the lack of AML/KYC controls increases risk for users, while Binance contends that self‑custody aligns with investor preferences for direct control of private keys.