Europe’s Crypto Law Is Driving Users Away From Regulation, Not Toward It
Share:
After MiCA took effect, Binance said 70% of EU users who withdrew funds opted for self-custody while only 30% moved to other regulated platforms, and Binance pulled its Greek MiCA licence and paused EU deposits on 1 July 2026. The shift suggests MiCA is driving crypto users away from regulated CEXs toward self-custody and DeFi, increasing adoption of noncustodial wallets but amplifying security and compliance risks due to absent AML and KYC controls.
Predictions Markets
See what traders are focused on
- 70% of EU users who left Binance after MiCA opted for self-custody, not a rival.
- Teng warned self-hosted wallets amplify risk as AML and KYC controls are absent.
- Binance pulled its Greek MiCA licence and paused EU deposits on 1 July 2026.
Europe’s landmark crypto regulation is producing an outcome its architects did not intend. Rather than driving users toward regulated platforms, MiCA appears to be pushing them in the opposite direction.
Binance CEO Richard Teng revealed that of the users who withdrew funds from Binance after MiCA came into effect, 70% moved their assets into self-hosted wallets, while only 30% shifted to other regulated platforms. The data suggests the regulation is consolidating crypto activity outside the supervised financial system rather than within it.
“Once it goes into a self-hosted wallet, the risks actually amplify,” Teng said. “You d…
Read The Full Article Europe’s Crypto Law Is Driving Users Away From Regulation, Not Toward It On Coin Edition.
Read More
Coinbase Secures UK MiFID License to Expand Trading Beyond Crypto
