Binance CEO Says MiCA Is Backfiring as EU Users Move Beyond Regulators’ Reach

Binance co-CEO Richard Teng recently revealed that 70% of European Union users who exited the platform following the implementation of the Markets in Crypto-Assets (MiCA) regulation have transitioned to self-custody solutions. This shift indicates that stringent regulatory frameworks may inadvertently drive users away from centralized, compliant exchanges toward decentralized alternatives that operate outside the direct oversight of regional authorities. By moving assets into self-custody, these users are effectively bypassing the compliance measures that MiCA was designed to enforce across the European digital asset market. This trend highlights a significant challenge for policymakers attempting to balance consumer protection with the preservation of market accessibility. For the broader RWA sector, this movement suggests that institutional-grade compliance may face friction if users prioritize sovereignty over regulated centralized platforms. The data underscores a growing preference for personal control over digital assets, which could influence how future RWA protocols design their custody and access layers. Ultimately, the migration away from regulated venues poses a risk to the intended transparency and oversight goals of the MiCA framework.