US Treasury Cuts MEXC Off From Financial System as Coinbase Secures Full Banking Charter

Two contrasting developments are reshaping U.S. crypto: tougher enforcement against platforms accused of illicit finance and deeper integration of established digital-asset companies into regulated markets.

The U.S. Treasury’s action against MEXC Global and Coinbase’s national trust charter illustrate how regulation is separating businesses viewed as risks from those seeking institutional legitimacy for crypto.

On November 6, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued an order cutting MEXC Global off from the U.S. financial system.

The agency alleges the exchange facilitated at least $16 billion in transactions linked to sanctions evasion, cybercrime and other illicit activity between May 2021 and May 2026. The flows involved Iran, North Korea and Russia, including dealings with sanctioned entities.

FinCEN said MEXC’s anti-money-laundering controls had severe deficiencies, despite the platform’s stated policies against serving prohibited jurisdictions.

Treasury cited nearly $1.5 billion connected to Russian sanctions evasion and about $1 billion in direct transactions with more than 40 Iranian crypto exchanges. It also identified transactions benefiting Iran’s central bank and the Islamic Revolutionary Guard Corps.

The order bars U.S. financial institutions from processing transfers to or from MEXC. Issued under Section 9714 of the Combating Russian Money Laundering Act, it takes effect 30 days after publication in the Federal Register. MEXC has said it is reviewing the action while continuing to operate.

Treasury said $232 million involved direct transactions with U.S., European Union and British-sanctioned entities. Exchanges can serve millions of customers, but weak customer checks and transaction monitoring expose them to sanctions and money-laundering risks.

Treasury’s move signals that offshore platforms are not beyond U.S. reach when their activities touch financial channels subject to its authority. Coinbase is moving in the opposite direction.

The company announced that the Office of the Comptroller of the Currency had granted final approval for Coinbase National Trust Company, upgrading its status from conditional approval to a full national trust charter.

The charter places eligible custody activities under federal oversight and strengthens Coinbase’s position as a digital-asset infrastructure provider for institutional clients. The approval does not make Coinbase a conventional commercial bank.

A national trust company operates under a different framework and does not automatically gain permission to accept ordinary customer deposits or make traditional bank loans. The decision advances crypto custody’s integration into financial oversight.

Coinbase is expanding how customers use tokenized assets. Through lending protocol Morpho on the Base blockchain, eligible users can borrow USDC against PAX Gold, a token representing gold held in custody.

The product offers liquidity without requiring holders to sell their gold exposure. New York residents are excluded. The loans bring risks as well as convenience. Borrowers must monitor interest rates, collateral values and liquidation thresholds; falling collateral values can trigger the sale of pledged assets.

Morpho says the wider Coinbase integration supports billions in collateral and active loans. The developments reveal crypto’s divided regulatory landscape.

Platforms facing serious compliance allegations risk losing access to critical financial infrastructure, while firms securing regulatory approval are building bridges between blockchain markets and traditional finance.

The industry’s next phase may depend less on expansion alone and more on transparency, accountability and trust.

US Treasury Sanctions Eight Canadian Crypto Exchanges Over Alleged Iranian Digital Asset Flows

The United States Treasury Department’s decision to sanction eight Canadian cryptocurrency exchanges over alleged connections to Iranian digital asset flows highlights growing international efforts to prevent cryptocurrencies from being used to circumvent financial restrictions.

The action underscores Washington’s increasing willingness to target digital asset intermediaries that it believes may facilitate transactions linked to sanctioned individuals, organizations or jurisdictions.

The sanctions raise important questions about the responsibilities of cryptocurrency exchanges, cross-border financial regulation and the ability of governments to monitor transactions conducted through decentralized and centralized digital asset networks.

Preventing Iran from accessing international financial systems remains a major national security priority. Washington has maintained extensive sanctions against Tehran over its nuclear programme, alleged support for militant organizations and other security concerns.

As traditional banking channels become more restricted, authorities have increasingly focused on alternative financial infrastructure, including cryptocurrency platforms, payment processors and digital asset service providers.

The latest action reflects concerns that cryptocurrency can provide additional channels for moving money across borders, potentially allowing individuals and organizations to bypass conventional financial controls.

The eight designated businesses are Diverse Trade Inc., operating as Million Exchange; 1380079 BC Limited and affiliate Top PC Technician Inc., linked to Amin Exchange; NIA Nations Currency Ltd.; 2397639 Ontario Ltd., operating as Farah Exchange; CCC Inc.; B Galaxy Inc., doing business as Cryptoyal; and Darvish Exchange.

According to Treasury’s Office of Foreign Assets Control, the businesses converted Iranian rials and other currencies into digital assets to facilitate international transactions.

Several allegedly dealt with previously sanctioned Iranian exchanges, including Nobitex, Wallex, Bitpin, Ramzinex and Shelbit. Treasury identified addresses associated with some firms that allegedly transacted with wallets linked to Iran’s Islamic Revolutionary Guard Corps.

The designations were announced under Operation Economic Outcast, a campaign launched in August to disrupt financial networks that Washington says sustain the Iranian government and the IRGC.

Treasury further alleged that several businesses handled proceeds connected to Canadian drug trafficker Ryan Wedding. Authorities said cash from drug sales was converted into digital assets and transferred abroad.

These allegations represent the US government’s stated basis for the designations, not independently established findings. The consequences are significant.

Assets belonging to the designated businesses within the United States or controlled by US persons must be blocked and reported.

US individuals and companies are generally prohibited from conducting transactions with them unless an authorization or exemption applies. Non-US firms that continue dealings may also face sanctions exposure.

The move demonstrates that crypto sanctions enforcement increasingly reaches beyond exchanges operating inside targeted countries. Money changers and payment intermediaries can also become targets when authorities believe they provide access to international financial channels.

The case reinforces the importance of customer due diligence, transaction monitoring, wallet screening and sanctions compliance. Blockchain transactions can be traced, but identifying the people behind wallet activity remains complex.

Regulators are combining on-chain analysis with intelligence shared across borders. The sanctions illustrate the intersection of digital finance and geopolitical enforcement. As governments intensify efforts to restrict illicit financial flows.

Crypto businesses will face greater pressure to prevent their services from being exploited to evade sanctions.