Binance is blocking transactions with sixteen crypto platforms starting 23 August, including major exchanges HTX and EXMO, following recent EU and US sanctions targeting Russia-linked entities. The world’s largest crypto exchange announced the move on 14 August, citing regulatory developments tied to the EU’s 21st sanctions package from July and US Treasury designations from early August. Other platforms including Bybit and Telegram Wallet had already begun rejecting HTX-linked transfers before Binance’s announcement.
HTX, formerly Huobi, disputes its UK sanctions designation, claiming it only applies to a separate legal entity, though UK authorities disagree. The platform’s daily spot volume has collapsed from over five billion dollars to 572.8 million. EXMO has chosen to cease operations entirely rather than contest its designation. Binance itself remains under DOJ and Treasury scrutiny following a 4.3 billion dollar settlement in November 2023 and has yet to secure EU regulatory approval after withdrawing its Greek MiCA application.
FXnCO Insight
Brokers should immediately review counterparty exposure to affected platforms and prepare for potential wallet holds as Binance’s compliance review process takes effect.
Source: Finance Magnates