- Binance recorded more than US$400 million (AU$568 million) in weekly net outflows as it withdrew its Greek MiCA licence application.
- The outflows represented a small proportion of Binance’s total assets and followed several days of billion-dollar net withdrawals.
- With the EU’s MiCA deadline approaching, Binance will restrict some services for affected users while continuing to pursue regulatory approval.
Binance recorded more than US$400 million (AU$568 million) in net outflows during the week beginning 22 June, coinciding with its decision to withdraw its application for a Markets in Crypto-Assets (MiCA) licence in Greece ahead of the European Union’s regulatory deadline.
Data from DefiLlama showed the weekly outflows represented around 0.3% of Binance’s tracked assets worth US$133.3 billion (AU$189.29 billion), or 0.35% of its US$113.8 billion (AU$161.60 billion) in crypto assets excluding BNB.
The exchange experienced its largest daily movement on the day it announced the withdrawal, recording net outflows of US$1.96 billion (AU$2.78 billion). This was followed by US$2.52 billion (AU$3.58 billion) and US$1.46 billion (AU$2.07 billion) in net outflows over the following two days.
Despite the figures, Binance routinely processes daily inflows and outflows worth billions of dollars, meaning the latest movements are not considered unusual on their own. The available on-chain data also does not indicate where the transferred funds originated.
Related: Binance Faces EU Shutdown Threat as Licence Bid Hits Regulatory Wall
MiCA Deadline Draws Close
The timing is notable because the EU’s MiCA transition period ends on 1 July, after which Binance will restrict onboarding and some services for affected users in parts of Europe while it continues pursuing regulatory approval.
Binance co-founder Yi He said Europe remains an important market for the exchange despite accounting for only around 1% of its spot trading volume, adding that the company intends to continue seeking a MiCA licence.
Related: More Than Half of Australia’s Business Leaders Now Hold Crypto Assets
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