Binance calculates that around 70% of the funds that left the platform after the end of the transitional period of the Markets in Crypto-Assets Regulation (MiCA), on July 1, would have been transferred to self-custody wallets "instead of to entities regulated under MiCA".
"Users are simply moving their activity to other channels and, in many cases, appear to be operating outside the regulated perimeter, where there may be fewer safeguards, limited customer support, more limited options for recovering funds, and less visibility for authorities," stated the platform's co-CEO, Richard Teng, in a statement.
In Teng's opinion, larger and already consolidated platforms, backed by robust regulatory compliance frameworks, "can detect, investigate, and act against risks, collaborate with authorities, and protect users when incidents arise."
In contrast, the executive stressed that self-custody wallets "do not offer the same operational mechanisms" and that MiCA was not designed "to push users towards channels with less protection."
The company has reiterated that it remains committed to the European market, to the principles of MiCA, and to close cooperation with supervisors to maintain a long-term presence fully aligned with regulation.
"The goal should be for users to remain on responsible platforms, subject to adequate and well-supervised oversight, which have the necessary scale, controls, and capacity to protect users and support authorities," he stated.
On July 1, Binance limited its services in the EU member states where it operated—including Poland, Spain, Italy, and France—after failing to obtain the MiCA license in time and after withdrawing its application to the Hellenic Capital Market Commission (HCMC) of Greece due to the blocking of the file.