Binance says 70% of EU users moved funds to self‑custody wallets

Following the enforcement of the EU's MiCA regulations on July 1, Binance halted its European services. The exchange reports that about 70 % of the funds withdrawn by its EU customers were transferred to self‑custody wallets rather than to competing regulated platforms, with only roughly 30 % flowing to other exchanges.

Self‑custody wallets allow users to control their private keys and store crypto assets directly, either in “hot” wallets connected to the internet for quick access or in offline “cold” wallets that mitigate hacking risk. While these solutions give users independence from custodial services, they also place full responsibility for security and recovery on the individual investor. Binance’s figures, though unaudited, suggest a broader shift among European crypto users toward managing their assets without relying on centralized exchanges.

Regulators had expected users to migrate to other licensed venues after Binance’s EU exit, but the data indicates a substantial portion are opting to keep their assets in personal wallets, reflecting growing demand for direct control of crypto holdings across the European market.