Regulators actually moved in two opposite directions this week, but many people focused on only one of them.
On November 6, the U.S. Treasury’s FinCEN ordered that, starting 30 days later—on December 10—U.S. banks and payment institutions must no longer transfer money to MEXC. The reason: between May 2021 and May 2026, MEXC handled at least $16.7 billion in illicit funds.
But that same week, FinCEN and the Federal Reserve withdrew a proposed revision to the crypto Travel Rule. The proposal would have lowered the reporting threshold for cross-border transfers; now, it won’t be changed.
My view is that the key question isn’t whether regulation is getting “stricter or looser.” Regulation is starting to diverge. The crackdown targets specific channels involved in illicit funds, while the easing reduces the general compliance burden on compliant institutions.
This week, both those bearish on “regulatory crackdowns” and those bullish on “regulatory easing” can find evidence to support their views. But both pieces of evidence point to the same thing: the wall between compliant and noncompliant exchanges is getting higher.
Keep an eye on three things next: whether MEXC’s USD deposits and withdrawals really stop after December 10; whether a second offshore exchange is named; and whether compliant exchanges can absorb the resulting inflows.
One more thing: MEXC hasn’t been shut down or added to the OFAC sanctions list, and users outside the U.S. are not directly affected. $BTC is currently around $73,700, still hovering near $73,000, and the market doesn’t seem to be reacting to this for now.
Do you think this combination of “targeted crackdowns + broad easing” will be bullish or bearish for compliant exchanges in the long run?
$BTC
#比特币 #监管 #Cryptocurrency
The above is for informational purposes only and does not constitute investment advice.
On November 6, the U.S. Treasury’s FinCEN ordered that, starting 30 days later—on December 10—U.S. banks and payment institutions must no longer transfer money to MEXC. The reason: between May 2021 and May 2026, MEXC handled at least $16.7 billion in illicit funds.
But that same week, FinCEN and the Federal Reserve withdrew a proposed revision to the crypto Travel Rule. The proposal would have lowered the reporting threshold for cross-border transfers; now, it won’t be changed.
My view is that the key question isn’t whether regulation is getting “stricter or looser.” Regulation is starting to diverge. The crackdown targets specific channels involved in illicit funds, while the easing reduces the general compliance burden on compliant institutions.
This week, both those bearish on “regulatory crackdowns” and those bullish on “regulatory easing” can find evidence to support their views. But both pieces of evidence point to the same thing: the wall between compliant and noncompliant exchanges is getting higher.
Keep an eye on three things next: whether MEXC’s USD deposits and withdrawals really stop after December 10; whether a second offshore exchange is named; and whether compliant exchanges can absorb the resulting inflows.
One more thing: MEXC hasn’t been shut down or added to the OFAC sanctions list, and users outside the U.S. are not directly affected. $BTC is currently around $73,700, still hovering near $73,000, and the market doesn’t seem to be reacting to this for now.
Do you think this combination of “targeted crackdowns + broad easing” will be bullish or bearish for compliant exchanges in the long run?
$BTC
#比特币 #监管 #Cryptocurrency
The above is for informational purposes only and does not constitute investment advice.