Binance Users Flee to Private Wallets Amid MiCA Regulatory Chaos

After Binance withdrew its MiCA license application in Greece due to administrative delays and political pressure, 70% of European users moved their cryptocurrencies to private wallets, while only 30% went to regulated platforms.

Binance co-CEO Richard Teng noted that this shift to self-hosted wallets bypasses Know Your Customer (KYC) and anti-money laundering (AML) controls, paradoxically increasing the risk for users.

Teng questioned the effectiveness of MiCA in minimizing risks for users, saying 'does the MiCA regime really fulfill its objective of minimizing risks for users? Because once funds migrate to a self-custody wallet, the risk is actually amplified.'