Key facts
- Binance is in talks with regulators about applying for new crypto licenses in Europe.
- The exchange withdrew its Markets in Crypto-Assets Regulation (MiCA) application in Greece on June 24.
- Co-CEO Richard Teng stated that 70% of EU users who withdrew funds from Binance opted for self-custody.
- Binance saw net outflows of $1.23 billion in the week of June 29.
- Binance is expanding its regulatory presence in Asia with existing or planned operations in Japan, Korea, Thailand, Indonesia, Australia, and the Philippines.
Binance is actively seeking new licensing opportunities within Europe, even as it navigates the complexities of the Markets in Crypto-Assets Regulation (MiCA). Co-CEO Richard Teng revealed that regulators have invited the exchange to apply for new licenses, following Binance's decision to withdraw its MiCA application in Greece. This move came as a surprise to Binance, which believed its application was compliant, but faced delays in approval.
Teng expressed skepticism about MiCA's effectiveness in protecting consumers, citing data that 70% of EU users who withdrew funds from Binance opted for self-custody rather than moving to MiCA-regulated entities. He argued that self-hosted wallets, which receive less regulatory oversight, are a more popular choice for many users. This trend coincided with a significant increase in Binance's net outflows, reaching $1.23 billion in the week of June 29.
Meanwhile, rival exchange OKX reported a substantial surge in app downloads during the same period. Beyond Europe, Binance is continuing its expansion across Asia, with existing or planned operations in Japan, Korea, Thailand, Indonesia, Australia, and the Philippines. In the Philippines, Binance operates through a partnership with BlockShoals Technologies, navigating a regulatory landscape where crypto trading falls under the Securities and Exchange Commission, while central bank-regulated services require separate authorization.