After MiCA deadline, majority of Binance users sent funds to self-custody not other compliant exchanges

What happened

After the MiCA deadline, most Binance users in Europe transferred their funds to self‑custody wallets instead of moving them to other compliant exchanges.

Confirmed

Global impact / market context

The move shows users prefer controlling their crypto when exchanges face regulatory limits, which can cut trading activity on licensed platforms, lower fee revenue, and push providers to redesign services to meet new rules.

Confirmed

MiCA, the EU’s Markets in Crypto‑Assets regulation, requires crypto firms to obtain authorization, removing unlicensed intermediaries like Binance’s partner. This creates a shift toward self‑custody and pressures exchanges to become fully compliant and may limit cross‑border services until compliance is proven.

Confirmed

What to watch

1. Binance might create a service that meets MiCA rules—Europe’s crypto regulation—so users could keep funds on the exchange instead of using self‑custody wallets. Analyst inference
2. Regulators may force other crypto platforms to drop unlicensed partners, leading more European users to either store assets themselves or move to fully authorized exchanges. Analyst inference
3. If many retail investors keep crypto in self‑custody, exchange trading volume could fall, meaning less fee income and weaker market depth, which is the ease of buying and selling. Analyst inference

Evidence

• cryptoslate.com