Just weeks after the European Union's Markets in Crypto-Assets (MiCA) regulation went into full force on July 1, Binance co-CEO Richard Teng revealed that roughly 70% of user assets withdrawn from the exchange following the rule change are heading to self-custody. The figure, drawn from internal data, underscores a rapid behavioral shift among European crypto holders.
The MiCA deadline
MiCA's hard enforcement date gave exchanges across the bloc a clear compliance deadline. For Binance, that meant adjusting its services to meet the new licensing and reporting requirements. The changes prompted a wave of withdrawals — but not all of those assets moved to rival platforms. According to Teng, the vast majority are leaving exchange custody entirely.
Binance's response
Speaking about the trend, Teng described the move to self-custody as a massive change in how European investors manage their digital wealth. He didn't specify the exact timeline for the data, but the 70% figure covers assets withdrawn after Binance implemented its MiCA-related service changes. The exchange has been working to align its European operations with the regulation, including registering in multiple member states.
Self-custody trend
The numbers suggest that many users aren't just switching exchanges — they're taking direct control of their crypto. Self-custody, where individuals hold their own private keys rather than relying on a third party, has long been a principle in the space. MiCA's arrival appears to have accelerated that preference in Europe. Whether other exchanges see similar patterns remains an open question, but Binance's data offers an early signal.
