Binance Blocks MEXC Transactions Following FinCEN Money Laundering Designation

In Brief:

• Binance has blocked direct and indirect MEXC transactions following FinCEN’s designation of the exchange as a primary money laundering concern.
• Restrictions cover MEXC Global Limited, MEXC Estonia OÜ, MEXC Singapore Pte Ltd, and other affiliates linked to prohibited cryptocurrency transfers.
• Binance will reject outgoing transfers, withhold incoming deposits for compliance reviews, and potentially restrict or terminate affected customer accounts entirely.

Binance has blocked cryptocurrency transfers involving MEXC and its affiliated companies, introducing restrictions that affect deposits, withdrawals, and customer accounts. According to a November 10 announcement, the exchange implemented these measures following FinCEN’s designation of MEXC as a primary money laundering concern.

The decision prevents Binance customers from transferring funds directly or indirectly through entities associated with MEXC. Under the restrictions, Binance will reject outgoing transfers involving designated companies and temporarily withhold incoming deposits for compliance reviews.

Binance Expands Transaction Restrictions Across MEXC Affiliated Companies

Binance identified several companies covered by the restrictions, extending its compliance measures beyond transactions involving the main MEXC platform. These entities include MEXC Global Limited, MEXC Estonia OÜ, and MEXC Singapore Pte Ltd, alongside other affiliated businesses.

Significantly, the restrictions cover both direct and indirect transfers, preventing customers from using intermediary accounts to process prohibited transactions. Users attempting to send cryptocurrency to these entities will have their outgoing transactions rejected under Binance’s compliance requirements.

Meanwhile, incoming deposits connected to MEXC will undergo additional reviews before Binance determines whether the funds can be released. The measures also cover transactions involving other MEXC affiliates, broadening their application across the exchange’s associated business network.

Binance Warns of Account Restrictions and Delayed Deposits

Customers whose deposits trigger compliance reviews may experience delays accessing their cryptocurrency while Binance examines the transactions. Furthermore, the exchange warned that accounts involved in prohibited transfers could face additional restrictions depending on compliance findings.

These measures may include limiting account services or terminating customer relationships where transactions violate the exchange’s requirements. Binance has not provided a specific timeline for releasing deposits withheld during the compliance review process.

The announcement also establishes different procedures for incoming and outgoing transactions, with rejected withdrawals and temporarily withheld deposits. FinCEN’s designation remains the central reason behind Binance’s restrictions on transactions involving MEXC and its affiliated entities.

Overall, Binance’s decision blocks MEXC-linked transfers while introducing additional compliance checks and potential account penalties for affected customers.