US Treasury Moves to Cut MEXC Off From US Banks as Binance Closes Accounts in Several European Countries

Western governments are restricting the points where crypto connects to the regulated banking system. The Treasury Department's Financial Crimes Enforcement Network (FinCEN) issued a final order under section 9714(a) of the Combating Russian Money Laundering Act against MEXC Global, a large offshore exchange. Starting 30 days after the order appears in the Federal Register, US financial institutions may not send funds to MEXC or receive funds from it. FinCEN alleges about $16 billion in illicit flows.

CoinDesk notes a mismatch in how the order is presented. The Treasury described it as part of its campaign against Iran, but the legal basis is MEXC's alleged role in Russian illicit finance, because section 9714 applies to Russian money laundering. FinCEN has used the same provision before against smaller exchanges with Russian ties, including Bitzlato in January 2023 and PM2BTC in October 2024.

In Europe, the pressure comes from licensing. CoinDesk reports that some Binance users were told to withdraw their crypto before new fees take effect, and that affected accounts will reportedly close on Dec. 31. Users in Spain, France and Poland say they received similar notices. Earlier this year, Binance told customers in several EU states it would not receive a license under the Markets in Crypto-Assets (MiCA) rules by the June 30 deadline.

Both actions point the same way. Exchanges that operate outside licensing regimes are losing access to dollars, euros and the banks that handle them. The regulated alternatives require identity checks and transaction reporting that give tax and sanctions authorities a full record of the user's activity.