Code & Chain · Signal Desk

After MiCA Deadline, Binance Users Favor Self-Custody: 70% of Funds Flow to Personal Wallets, Not Compliant Exchanges

Original sourceBlock385Additional: Nermeen Nabil

Summary

Following the July 1 EU Markets in Crypto-Assets (MiCA) deadline, Binance Co-CEO Richard Teng stated that up to 70% of EU users' withdrawn funds went to self-custodial wallets, with only about 30% moving to regulated compliant platforms. This data has not been independently audited and lacks disclo…

Key points

  • Regulators and exchanges can use this to assess MiCA's real-world impact and adjust product and compliance strategies in response to the self-custody trend.
  • MiCA's early implementation fails to steer most users toward compliant platforms, highlighting the challenge self-custody preferences pose to the regulatory framework.
  • Exchanges should strengthen self-custodial wallet integration and user education; regulators should consider adjusting monitoring mechanisms to maintain market transparency.

Editorial note

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