Binance co-CEO Richard Teng said 70% of funds withdrawn by the exchange's European users following its EU service suspension went to self-custodied wallets, with the remaining 30% moving to licensed platforms. Speaking at the Reuters NEXT Asia summit in Singapore on Thursday, Teng questioned whether the EU's MiCA regulatory framework serves its intended purpose of reducing user risk, noting that assets in self-hosted wallets fall outside the oversight and anti-money laundering controls that apply to regulated exchanges. Binance suspended services for affected EU users after withdrawing its MiCA license application in Greece ahead of the bloc's July 1 licensing transition deadline.
Binance Reports 70% of EU Withdrawals Moved to Self-Custody Wallets
Teng shared the withdrawal distribution figures at the Reuters NEXT Asia summit in Singapore on Thursday. He said about 70% of withdrawn funds moved to self-custody, while the remaining 30% went to licensed platforms. Teng argued the figures raise questions about whether MiCA serves its intended purpose of reducing risk for users. He noted that assets moved to self-hosted wallets fall outside the oversight, anti-money laundering, and know-your-customer controls that apply to regulated exchanges. "Does the MiCA regime then serve its purpose to make sure that you minimize risk for the users because once it goes into self-hosted wallet, the risk actually amplified," Teng said.
Binance Withdrew Greece MiCA Application Before July 1 Deadline
Binance suspended services for affected EU users after withdrawing its MiCA license application in Greece ahead of the bloc's July 1 licensing transition deadline. Teng said the exchange pulled the application after approval delays despite submitting what it believed was a fully compliant filing. He said the decision was made to avoid leaving users with a short transition period. Last month, Binance founder Changpeng Zhao told The Block the application had been close to approval before what he described as "political forces" intervened, prompting the company to withdraw the filing and pursue authorization in another EU member state.
Binance Plans Aggressive Asia Expansion Across Licensed Markets
Teng said Binance has not abandoned Europe, noting that several EU jurisdictions have invited the exchange to apply for local licenses, though he declined to identify them. He said Binance would continue working closely with regulators across the region. Teng expressed confidence in Binance's regulatory standing, describing it as the only global crypto exchange with a home regulator overseeing its operations end-to-end. He said the Financial Services Regulatory Authority in Abu Dhabi supervises the company's governance, anti-money laundering, know-your-customer, transaction monitoring, listing policies, and wallet management after what he described as an 18-month review process.
Binance plans to expand "quite aggressively" across Asia. Teng said the exchange is already licensed in Japan, South Korea, Thailand, Indonesia, Australia, India, and Pakistan. He said the exchange recently launched operations in the Philippines through a partnership with Blockshow and expects to secure additional licenses in the region this year. Teng said Binance now serves about 323 million users globally out of roughly 740 million people with crypto exposure worldwide.
FAQ
What percentage of Binance EU withdrawals went to self-custody wallets after the MiCA deadline?
Binance co-CEO Richard Teng said 70% of funds withdrawn by European users went to self-custodied wallets, with the remaining 30% moving to licensed platforms.
Why did Binance withdraw its MiCA license application in Greece?
Teng said Binance pulled the application after approval delays despite submitting what it believed was a fully compliant filing. He said the decision was made to avoid leaving users with a short transition period before the July 1 licensing deadline.
Where is Binance planning to expand its operations?
Teng said Binance plans to expand "quite aggressively" across Asia. The exchange is already licensed in Japan, South Korea, Thailand, Indonesia, Australia, India, and Pakistan, recently launched in the Philippines through a partnership with Blockshow, and expects to secure additional licenses in the region this year.
