Binance EU Users Flee to Self-Hosted Wallets Amid MiCA Regulatory Shift

Binance's European users withdrew over $1.23 billion in assets after the EU's Markets in Crypto-Assets regulation, MiCA, took effect on July 1.

About 70% of these funds were moved to self-hosted wallets, while only around 30% went to regulated exchanges with MiCA licenses.

Binance CEO Richard Teng stated that this shift could undermine the consumer-protection goal of MiCA, as users are moving to less-regulated environments.

The exchange recorded a significant increase in net outflows, up 207% from the previous week, reflecting fund movements driven by regulatory changes rather than market volatility or security incidents.