70% of EU Crypto Funds Go to Unregulated Wallets Despite MiCA Regime

Binance CEO Richard Teng has expressed concerns about the effectiveness of the EU's crypto regulatory regime, MiCA. According to Teng, since MiCA went into effect, 70% of funds withdrawn from Binance by EU users have ended up in unregulated self-hosted wallets.

This means that only 30% of the funds flowed to MiCA-regulated entities. Teng argued that once funds go to self-hosted wallets, the risk amplifies because there is no oversight and AML controls. He questioned whether MiCA can serve its purpose by minimizing risks for users if most funds end up in unregulated wallets.

The Binance CEO's comments come as the exchange failed to obtain MiCA approval and withdrew its initial Greek application. As a result, platforms without approval are required to allow users to move their funds and stop new sign-ups of EU citizens.