KuCoin has expanded its sanctions screening to cover indirect crypto transfers involving 17 platforms, according to a compliance notice issued on August 27. The move extends restrictions beyond direct transactions, potentially affecting users whose funds pass through intermediaries connected to the listed entities.
The platforms covered by KuCoin's restrictions include Shelbit, Aban Tether, A7 Nigeria, A7 Africa, PilotFinance, Rapira, Aifory Pro, ABCeX, WhiteBird, NoOnecrypto, Tradex, Monease, BitPapa, Exnode, Exnode Pay, EXMO, and HTX (Huobi Global SA). The restrictions were implemented in phases, with some providers added as early as August 7 and others added by August 23.
Under the policy, KuCoin may screen the source of funds, originating and destination addresses, and intermediary service providers for connections to the affected entities. Transactions to these platforms may face enhanced review or trigger temporary wallet and account restrictions. KuCoin stated that repeated or serious violations could result in suspension or withdrawal of its services.
KuCoin has not disclosed the number of transaction hops it traces or what level of on-chain attribution is sufficient to establish an indirect connection.
HTX faces mounting restrictions
HTX, linked to Justin Sun, is the most significant name on KuCoin's list by scale. Binance implemented similar restrictions on August 23, halting transactions involving HTX and 10 other platforms as part of its own sanctions-compliance measures. This narrows the routes through which HTX-linked funds can move across major exchanges.
HTX continues to dispute sanctions-related allegations and the corporate identity behind the designation. The exchange stated in May that Huobi Global S.A., the entity named in EU regulations, is distinct from the online HTX exchange. HTX said it is pursuing legal and compliance discussions with authorities in the UK and EU, with some users reporting frozen funds on third-party platforms including Kraken.
According to HTX's head of markets, the exchange processed more than 100,000 deposit and withdrawal transactions over two days without identifying new cases of indiscriminate freezes. HTX recently upgraded its wallet infrastructure and introduced a withdrawal-address rotation mechanism, describing these changes as security measures intended to reduce disruption from third-party risk controls.
Broader implications for transaction oversight
The controls broadly track recent US and European sanctions actions but extend beyond direct counterparties. For users, the practical effect means funds linked to HTX or another listed provider can face restrictions before reaching KuCoin, depending on the transaction path and intermediaries involved. This approach pushes sanctions enforcement deeper into transaction provenance, with exchanges increasingly assessing where funds originated, where they are headed, and which services they touched along the way.
