Binance Reports 70% of EU Users Transitioned to Self-Custody Wallets

Binance Co-CEO Richard Teng stated at the Reuters NEXT Asia conference in Singapore that approximately 70% of the assets withdrawn by users in the European Union from the platform have been moved to self-custody wallets, while 30% have transitioned to exchanges operating under MiCA regulations. This situation emerged following Binance's withdrawal of its MiCA license application in Greece. Teng expressed that the shift of assets to wallets under direct user control, rather than regulated platforms, raises significant questions about the practical impact of MiCA. Users are moving their transactions to areas outside the oversight of financial authorities. In self-custody wallets, users do not leave their private keys with an intermediary, which can lead to them being outside the anti-money laundering controls of licensed platforms. Teng emphasized that this situation could reduce regulators' visibility into transactions and make it more difficult to track financial crimes. Binance recorded a net outflow of approximately $1.23 billion from affected European customers during the MiCA transition week. Following the outflows, Binance withdrew its MiCA application due to not receiving the necessary approval in Greece. Richard Teng noted that Binance has not exited the European market and has called for regulators in some EU countries to submit new license applications. The company aims to continue its operations in Europe within a restructured framework.

Disclaimer: This content is provided for general branding and informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online events, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets or to use any services. Crypto assets are highly volatile and may result in loss. WEEX services and online events may not be available in all regions and are subject to applicable laws, regulations, and eligibility requirements. You are responsible for ensuring that your use of WEEX services complies with local laws and for carefully assessing the risks before participating in any crypto-related activities.