For brokers, part of the counterparty due diligence now happens upstream, as exchanges start filtering out sanctioned platforms before brokers have to.
Binance said on 14 August it will block transactions with 11 crypto platforms from 23 August, including HTX and EXMO, after already cutting off five smaller platforms — Shelbit, Aban Tether Exchange, A7 Nigeria, A7 Africa and PilotFinance — earlier in the month.
The exchange attributed the move to "recent regulatory developments" without naming a specific action.
Sixteen platforms are affected in total, matching the 14 crypto-related entities in the EU's 21st Russia sanctions package, adopted in July, plus Shelbit and Aban Tether, added separately by the US Treasury on 7 August.
Other platforms had already started limiting exposure to HTX before Binance's move. Per Finance Magnates testing, transfers linked to HTX were being rejected by Bybit and Telegram Wallet ahead of the announcement
HTX Contests the Designation, EXMO Shuts Down
HTX, formerly Huobi, disputes that the UK's May designation covers its exchange, arguing it applies only to a separate legal entity; the UK's sanctions authority has said the exchange is covered through common ownership.
The platform's daily spot volume has also declined sharply, from a peak above $5 billion in late 2025 to $572.8 million as of 14 August, according to CoinGecko.
EXMO's position is more serious. The exchange has said it is winding down operations entirely, rather than contesting the designation.
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Binance's Own Compliance Record Stays under Scrutiny
The exchange paid roughly $4.3 billion in November 2023 to settle criminal and civil charges with the US Department of Justice, FinCEN and OFAC, and accepted an independent monitor as part of that agreement.
In April, Senator Richard Blumenthal asked the DOJ and Treasury for an update on that monitorship, citing reports of Iran-linked transfers through Binance-associated accounts, which Binance disputes.
Separately, Binance withdrew its MiCA licence application in Greece in June and has not yet secured authorisation elsewhere in the EU. The wider block takes effect on 23 August.
Binance has said transactions attempted with the listed platforms after that date may be held for compliance review, with restrictions potentially applied to affected wallets while reviews are under way.
