With an order from FinCEN, MEXC Global has been cut off from the US financial system. The regulator’s ban prohibits American banks and institutions from handling any transactions with the exchange, crypto or otherwise, on the grounds of sanctions evasion involving Russia, Iran, and North Korea. It is a development that has unsettled the crypto world and left some wondering about the best way to safeguard their funds.
Why Did FinCEN Ban MEXC Global?
The formal prohibition was put in place by the US Financial Crimes Enforcement Network (FinCEN) on November 6, 2023. In doing so, it has raised the stakes on US enforcement against exchanges suspected of evading sanctions. All US financial institutions are now barred from processing anything related to MEXC Global, including cryptocurrency operations.
FinCEN puts the figure at $16 billion in transactions connected to illicit activity that MEXC Global processed from May 2021 to May 2023. A significant portion of this, $1.5 billion, can be traced to the circumvention of Russian sanctions via platforms such as Garantex and Greenex. The regulator is making an example of MEXC as part of a broader campaign against platforms that do business with sanctioned parties in the three countries.
Impacts on Users: Withdrawals and Transfers
MEXC Global claims that deposits, withdrawals, and trading are still operational. Yet the hosts of Pro Blockchain Media Live have noted that not all users find this to be the case; there are reports of issues with transfers. A transaction to OKEx or Binance from MEXC, for instance, might be rejected after closer scrutiny.
US-affiliated platforms have no choice but to halt or at least investigate any dealings with MEXC Global following the ban, and the heightened scrutiny will result in rejections or delays for anyone trying to move money between centralized exchanges.
Steps to Safeguard Your Crypto Holdings
To avoid having assets frozen, the experts at Pro Blockchain Media Live advise withdrawing directly to a TrustWallet or MetaMask-type personal wallet. From the safety of a self-custody wallet, one can then use a DEX to swap without leaving a direct trail and risking a block. For the community to keep abreast of the rapidly changing circumstances, Pro Blockchain Media Live offers sound advice and in-depth updates via their Telegram channel.
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