US Treasury cuts crypto exchange MEXC Global off from US financial system

what happened

The US Treasury Department said it has severed crypto exchange MEXC Global from the American financial system after the platform allegedly supported $16 billion in transactions linked to Iran, North Korea and Russia. The information was reported by The Block.

On Friday, the Financial Crimes Enforcement Network, a Treasury unit, issued an order against MEXC Global and labeled it a money laundering concern. Treasury Secretary Scott Bessent said in a statement: "Financial institutions cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system." The department also said that although the exchange claims it runs anti-money laundering controls and will block users in Iran and North Korea, those controls showed "severe deficiencies."

This is not an isolated step. Earlier, the US sanctioned Iran's largest crypto exchange, Nobitex, and the exchange BitBank, which Washington accused of bitcoin transfers to the Islamic Revolutionary Guard Corps.

why it matters

For markets, the news signals that Washington keeps tightening scrutiny of crypto platforms it says help evade sanctions. The decision does not directly change the bitcoin price, but restrictions on large exchanges can reduce liquidity and complicate access to dollar payments for platforms that deal with sanctioned regions.

market impact

Crypto exchanges: risk of restrictions for platforms tied to Iran puts pressure on the sector

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