After MiCA deadline, majority of Binance users sent funds to self-custody not other compliant exchanges
Binance reported that after July 1, up to 70% of EU user withdrawals went to self-hosted wallets controlled by users, while only about 30% moved to MiCA-regulated platforms. The figures were not independently audited and lacked key methodological details, so they cannot be verified. The pattern suggests MiCA forced Binance out as an intermediary, but did not push most users toward regulated custodians; many chose self-custody instead. ESMA guidance allowed both authorized providers and self-hosted wallets as wind-down destinations. MiCA can bar unlicensed firms from serving EU clients, but it cannot stop users from holding their own keys. Binance says self-custody increases user control but reduces support, recovery options, and regulatory visibility. The case highlights a data gap: without standardized wind-down reporting, it is hard to tell whether MiCA reduced risk or simply shifted assets elsewhere.
