Binance Says 70% of EU Users Chose Self-Custody as MiCA Rules Face Review

• Binance CEO Richard Teng said 70% of affected EU users moved their crypto to self-custodied wallets after the platform’s MiCA-related changes
• The European Commission has already launched a review of MiCA, seeking feedback on possible updates to the framework just days after full implementation
• Binance and MiCA data offers one of the first real-world snapshots of how users are responding to Europe’s new crypto regulations

Europe’s landmark crypto rulebook has barely settled into place, yet it’s already being reassessed. As Binance and MiCA developments continue to unfold, the European Commission has opened a review of the Markets in Crypto-Assets (MiCA) framework. This comes as Binance CEO Richard Teng revealed that most affected users chose self-custody over regulated platforms. Both developments show one of the earliest glimpses into how investors are reacting to Europe’s biggest shake-up of crypto regulation.

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Binance-MiCA Development Offers an Early Test of Europe’s Crypto Rules

Speaking at an interview, Binance CEO Richard Teng said around 70% of users affected by the exchange’s MiCA-related changes transferred their crypto to self-custodied wallets. Meanwhile, the remaining 30% moved assets to other regulated exchanges.

The figures followed Binance’s decision to suspend trading services for EU customers. This came after withdrawing its MiCA license application in Greece ahead of the July 1 deadline. The exchange later attempted to secure approval in France, but that application was also rejected.

Teng described the response as evidence that many crypto investors still value direct control over their assets. Self-custody allows users to hold their own private keys rather than relying on an exchange. It should be noted that it places full responsibility for security on the owner.

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Europe To Review MiCA

The timing is notable because the European Commission has already begun consulting industry participants on possible changes to MiCA. Feedback is reportedly open until September 30. According to the consultation, officials are evaluating whether the framework should expand to cover emerging sectors. This includes tokenization and certain non-EU stablecoin issuers.

This review comes just days after MiCA became fully operational across the bloc. It should be noted that Binance’s user data is one of the first large-scale indicators of how investors behave under the new rules. A EU diplomat said,

“Reopening the file seems unavoidable at this stage, not only in light of the position expressed by several European institutions (not least the ECB), but also to cater for the most recent regulatory and technological developments worldwide.”

Whether the migration reflects a lasting preference for self-custody or a short-term response to Binance‘s operational changes remains uncertain. What is clear is that regulators now have their first meaningful set of user behavior data as Europe’s crypto rulebook enters its next phase.

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