Binance Strengthens Compliance Systems to Curb Illicit Crypto Activity

Global cryptocurrency exchange Binance says it is strengthening its compliance and regulatory systems as part of wider efforts to build trust and transparency in the digital asset industry.

The company said it has invested heavily in expanding its global compliance structure, including hiring more specialists and upgrading monitoring technology to match growing regulatory expectations in markets where it operates.

“These ongoing efforts are designed to support responsible innovation while ensuring that user protection, financial integrity, and market transparency remain at the core of the platform’s operation,” the exchange said in a statement.

According to the company, the new framework includes stricter identity verification processes, stronger anti-money laundering controls, and advanced monitoring tools that help track suspicious activity on the platform.

These measures form part of a broader compliance programme designed to detect illegal transactions early, prevent abuse of the platform, and ensure adherence to international financial regulations.

Over the years, Binance says it has developed one of the largest compliance structures within the cryptocurrency sector. The system combines blockchain analytics tools, data-driven monitoring systems, and close cooperation with regulators and law enforcement agencies around the world.

The exchange currently has more than 580 staff working directly in compliance roles, supported by over 970 employees involved in related functions across customer service, technology, and product teams.

Together, more than 1,500 workers are now involved in compliance-related operations aimed at protecting the platform’s global user base of over 300 million people.

The company says these investments are already producing measurable results. Direct exposure to illicit activity on the platform has declined by 96 per cent between January 2023 and June 2025.

Sanctions-related exposure has also fallen sharply, dropping from 0.284 per cent in January 2024 to 0.009 per cent by July 2025.

“This progress reflects daily collaboration with authorities, independent research, and the lived experience of serving over 300 million users safely, demonstrating how modern crypto compliance works in practice,” the company said.

Chief Compliance Officer Noah Perlman said the exchange has shifted its focus toward anticipating risks rather than simply reacting to them.

“We have built a system that does not just respond to threats but works to detect them early. A 96 per cent reduction in illicit exposure reflects the strength of our systems and the more than 1,500 professionals working to safeguard our users,” Perlman said.

The exchange also highlighted its cooperation with international law enforcement agencies in tackling financial crime linked to digital assets.

Investigations

In 2025 alone, Binance responded to more than 71,000 requests from investigators and helped authorities recover more than $130 million in funds linked to illegal activities.

The company works with agencies including Europol, INTERPOL, the Drug Enforcement Administration, the National Crime Agency and Homeland Security Investigations.

According to the exchange, such partnerships have contributed to investigations targeting ransomware operations, darknet marketplaces, human-trafficking networks and online fraud schemes.

“The value of our work has been repeatedly recognized by our global law-enforcement partners,” the company said.

Binance co-chief executive officer Richard Teng said building trust remains central to the company’s long-term vision for digital finance.

“Our mission has always been to increase the freedom of money, but that freedom can only last if it is supported by strong trust,” Teng said.

“By embedding compliance into the core of our platform, we are demonstrating that the world’s largest exchange can also operate with the highest levels of security and accountability.”

Since its launch in 2017, Binance says it has continued to invest in systems that protect users and support the responsible growth of the global cryptocurrency market.