Binance, the world’s largest cryptocurrency exchange by trading volume, has stopped all transfers involving MEXC and its affiliated companies. The move comes shortly after the U.S. Treasury took steps to exclude global crypto exchange MEXC from the U.S. financial system.
Stricter controls following FinCEN’s order
Binance announced on Tuesday that it immediately halted all trading and fund transfers involving MEXC. This decision is a direct response to the recent determination by the U.S. Financial Crimes Enforcement Network (FinCEN), which labeled MEXC as a Primary Money Laundering Concern.
According to Binance, its users are now prohibited from sending or receiving funds to or from MEXC or conducting any transactions involving entities under the MEXC umbrella. The announcement emphasized that all related services were discontinued with immediate effect.
While restrictions take effect immediately, Binance explained that its move follows the decision by FinCEN to designate MEXC as a Primary Money Laundering Concern, leading the exchange to halt all activity involving MEXC and its affiliates.
MEXC’s affiliated organizations listed by Binance include multiple international branches such as MEXC Global Limited, MEXC Estonia OÜ, MEXC Singapore Pte Ltd, MEXC Global Foundation Ltd, and GIDA Technology AG, along with several other subsidiaries.
Mini dictionary: FinCEN is the U.S. Financial Crimes Enforcement Network, a bureau of the U.S. Department of the Treasury responsible for combating money laundering and enforcing laws against financial crimes.
MEXC fraud allegations trigger market response
FinCEN issued its directive against MEXC on November 6, which effectively cut the exchange off from all connections with the U.S. financial system. MEXC ranks among the top 20 cryptocurrency exchanges globally by trading volume.
The U.S. Treasury accused MEXC of facilitating at least $16 billion in illicit transactions related to sanctions evasion and cybercrime. Officials also alleged that the exchange misled users and defrauded them of their funds through these activities.
| Exchange | Regulatory Action | Reason | Date |
|---|---|---|---|
| MEXC | Cut off from U.S. financial system | Fraud, sanctions evasion, cybercrime | Nov. 6 |
| Binance | All transactions with MEXC prohibited | Compliance with FinCEN measures | Nov. 10 |
Binance is the first major cryptocurrency exchange to announce measures that directly comply with the FinCEN ruling. Industry analysts note that several other exchanges could soon implement similar restrictions in response to the evolving regulatory landscape around MEXC.
Officials stated that the U.S. Treasury accused MEXC of enabling large-scale illegal transactions, prompting other exchanges to consider regulatory action as well.
MEXC, founded in 2018, is a global digital asset trading platform serving millions of users. Following the accusations, its network of affiliated companies was also listed in the ban, expanding the scope of the action across multiple jurisdictions.
