Most of the resources withdrawn by European users from Binance after the suspension of services in the European Union were directed to self-custody wallets. The data was disclosed by the exchange's co-CEO, Richard Teng, indicating that about 70% of the amounts followed this path, while 30% were transferred to platforms licensed under the MiCA regime.
The statements were made during the Reuters NEXT Asia summit in Singapore. Teng highlighted that user behavior raises discussions about the effectiveness of European regulation in its goal of reducing risks in the cryptocurrency market.
According to the executive, assets held in self-hosted wallets remain outside traditional supervision mechanisms. This includes anti-money laundering (AML) rules and identity verification (KYC) processes required of regulated exchanges.
"Does the MiCA regime fulfill its purpose of minimizing risks for users, given that, by migrating to a self-hosted wallet, the risk actually increases?" Teng asked.
Binance chose to suspend its services for certain EU users after withdrawing its license application in Greece. The decision came before the final MiCA transition deadline, on 1º de julho, after delays in the approval process.
Teng stated that the company considered its application fully compliant with regulatory requirements. The withdrawal was adopted to prevent users from facing a reduced transition period.
Even with the temporary exit from the bloc, the exchange remains interested in Europe. Teng revealed that different European jurisdictions invited the company to apply for new licenses, reinforcing its intention to continue in the region.
In the global regulatory field, the executive highlighted that Binance has full supervision of its operations by the Abu Dhabi Financial Services Regulatory Authority. The process included an 18-month review involving governance, AML, KYC, and transaction monitoring.
At the same time, the company is accelerating its expansion in Asia, with regulatory presence in countries such as Japan, South Korea, Thailand, and India. Its global user base also continues to grow, reaching about 323 million.