Binance Reveals Where Its EU Users Went After MiCA

Binance's co-CEO reveals the impact of EU's MiCA regulations on users, showing a notable shift in how they manage crypto assets post-regulation.

When the EU rolled out its MiCA regulations on July 1, many crypto enthusiasts were left wondering: where would displaced users go? Binance has the answer, and it’s not quite what the European regulators had hoped for. The numbers show a significant shift in how EU users are managing their crypto assets post-MiCA. Let’s dive into the latest revelations from Binance’s co-CEO, Richard Teng, and what they mean for the future of cryptocurrency in Europe.

What Did Binance's CEO Reveal About EU Users?

Speaking at the Reuters NEXT Asia summit in Singapore on July 9, Binance co-CEO Richard Teng revealed a striking statistic: approximately 70% of EU users who withdrew their funds from the platform after the MiCA transition moved their assets into self-hosted wallets. In contrast, only about 30% of these users opted to transfer their funds to MiCA-regulated entities.

Teng, a former regulator himself, framed this development as a cautionary tale for the EU. He argued that encouraging users towards self-hosted wallets ultimately undermines the consumer protection goals that MiCA aims to achieve. Since non-custodial wallets fall outside the Anti-Money Laundering (AML) and Know Your Customer (KYC) controls required for licensed exchanges, he stated, the risks associated with crypto holdings could actually increase rather than decrease.

“Once crypto goes into a self-hosted wallet, the risks amplify rather than shrink,” Teng emphasized.

This significant split in user behavior has been covered by various major outlets including Cointelegraph, Reuters, and Yahoo Finance, underlining the reality that users have a vastly different view of self-custody compared to regulatory bodies.

Why Did So Many Binance Users Leave?

The exodus from Binance was largely driven by its regulatory setbacks. On June 24, Binance withdrew its application for a MiCA regulation license in Greece, anticipating rejection from the Greek regulators. Without a license by the July 1 deadline, Binance halted services for new EU customers and restricted existing services, leaving many users scrambling for alternatives. During the week starting June 29, the exchange experienced a staggering net outflow of roughly $1.23 billion, marking a 207% increase in outflows compared to the previous week, according to DefiLlama data.

This sudden need to relocate a massive volume of capital prompted existing users on Binance to reassess their options and where to move their funds.

Are EU Exchanges Welcoming Ex-Binance Traders?

Absolutely! The MiCA transition created a unique opportunity for licensed platforms in Europe. As seasoned traders were forced to move their assets, these exchanges jumped at the chance, resulting in a highly competitive environment for migrating accounts.

For example, OKX Europe launched its "Time to Switch" campaign, offering deposit bonuses of up to 8% over 52 weeks and an additional 400 euros in BTC for new users. Similarly, Coinbase countered with its own transfer bonus of up to 5% for users who moved their funds before mid-July. This urgency and competition have led to record EU sign-ups on these platforms.

These campaigns represent a strategic departure from typical crypto marketing tactics; they’re not targeting newcomers but established traders already familiar with the process of transferring funds. Each account that successfully migrates becomes a reliable source of trading volume, staking balances, and fees, justifying the generous incentives.

Which MiCA Exchanges Offer the Biggest Rewards?

Given the current climate, many are asking which MiCA-regulated exchanges are offering the most lucrative rewards for users still holding funds on Binance or similar platforms. The bonuses being offered are real, but they come with time limits, caps, and vary significantly by exchange, region, and deposit method. Therefore, it's worthwhile for users to conduct thorough comparisons before committing to a specific offer.

At Velora88, we've compiled a comprehensive breakdown of the current incentives available at MiCA-regulated exchanges, highlighting the bonus structures, caps, and deadlines. This can help you find the best deal when moving your funds.

What Does This Mean for Europe's Crypto Market?

Teng's revelation of the 70/30 split indicates a more profound shift within the EU's crypto landscape. Many users are not merely swapping from one exchange to another; they are increasingly opting to hold their assets directly. This trend could lead to a narrower and more regulated market on the licensed exchange side, while simultaneously expanding the pool of self-custodied capital operating outside the regulators' oversight.

With MiCA having defined who can operate legally in the EU, the critical question now remains: where do users prefer to keep their cryptocurrency—on a regulated platform or in private wallets? The answer is becoming clearer.

• 70% of EU users withdrew funds from Binance to self-hosted wallets after MiCA.
• Only around 30% moved to MiCA-regulated exchanges, highlighting a potential shift towards self-custody.
• Binance experienced significant outflows, totaling approximately $1.23 billion in just a week post-MiCA.
• EU exchanges are aggressively courting displaced users with competitive bonuses and incentives.
• The ongoing trend suggests a move towards self-custody in Europe, posing challenges for licensed exchanges.

For those looking to explore options for their crypto holdings, check out the competitive rates available on exchanges like Binance, Bybit, Bitget, OKX, and MEXC through our referral pages at Velora88 for exclusive bonuses.