Zachxbt says Kucoin not facing sanctions despite worse offenders
Zachxbt pointed out that Kucoin avoids sanctions even as FinCEN labeled Mexc a primary money‑laundering concern, prompting Binance to halt Mexc transactions.
Key takeaways
- 1FinCEN designated Mexc as a primary money‑laundering concern.
- 2Binance stopped processing fiat‑on‑ramp and withdrawal transactions involving Mexc.
On Thursday, crypto analyst Zachxbt said Kucoin is not being sanctioned even though worse offenders such as Htx and Mexc are currently facing regulatory action. He posted the comment on X, noting the apparent inconsistency in how authorities are treating different exchanges across jurisdictions.
FinCEN earlier designated Mexc as a primary money‑laundering concern, a classification that triggers heightened scrutiny under US anti‑money‑laundering rules. In response, Binance announced it would cease processing any fiat‑on‑ramp or withdrawal transactions that involve Mexc, effectively cutting off the exchange from one of the world’s largest crypto trading platforms.
Zachxbt is a long‑standing commentator on compliance and AML issues within the cryptocurrency industry. Kucoin, Htx and Mexc are all digital‑asset exchanges that provide trading, lending and fiat‑on‑ramp services to users worldwide. Sanctions or AML designations can restrict an exchange’s ability to access US banking partners, limit liquidity and increase compliance costs, which in turn affects traders and investors who rely on those platforms.
The disparity noted by Zachxbt suggests that regulatory enforcement may not be uniform across exchanges, raising concerns for users about the stability and compliance of platforms without clear sanction status. Market participants will monitor FinCEN’s next steps, any potential US Treasury or OFAC actions against Kucoin, and whether other major venues like Binance will extend similar restrictions to additional exchanges.
Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.