Binance did not obtain a license under MiCA, the EU rules requiring crypto exchanges to hold one to serve customers. Public reporting in June said its application would be refused. Binance withdrew the application on June 24. On July 1, it restricted services for users in France, Italy, Poland, and Spain. New deposits and orders stopped, while withdrawals remained open.

Binance had recorded net outflows for most of 2026. The deficit grew as the MiCA deadline approached, suggesting uncertainty around EU access may have contributed. Outflows in February and March had tracked a broader market selloff. A larger second wave began in late May and continued into early July. Net flow reached a $112M-a-day deficit in the second half of June, the largest of 2026.

Most of that money did not move directly to other centralized exchanges. The direct share fell from a 25% March-to-May baseline to 21%. At the same time, the self-custody and onchain share rose from 74% to 78%. The figures measure only the first destination one hop from Binance, so the share reaching other centralized exchanges is a floor.

Public reporting raised questions about whether the high share moving onchain reflected concerns about the source or legitimacy of the assets. Allium data provides industry context. Binance sent 75% of its 2026 outflow to self-custody, close to Coinbase's 78% and within the 44% to 85% range across major centralized exchanges. Outflows increased during the MiCA period, but the destination mix changed only modestly.

Every figure comes from Allium's labeled onchain flow data across all major chains. The data provides a directional view of observed activity. It does not capture every Binance flow or identify confirmed EU-user behavior.

Informational only. Not investment advice.

By Olivia Denk, Research @Allium / Elton Shehdula, Head of Research @Allium