70% of EU user withdrawals moved to self-custodied wallets
Following the suspension of services in the European Union due to MiCA licensing issues, Binance saw a significant portion of its EU users opt for self-custody.
Around 70% of funds withdrawn by EU users were transferred to self-custodied wallets, while only 30% moved to MiCA-compliant regulated platforms.
This trend raises questions about the effectiveness of MiCA in achieving its intended consumer protection goals, as self-hosted wallets operate outside the oversight applied to licensed exchanges.