The share of illicit transactions on major crypto exchanges has fallen to record lows—just 0.018% to 0.023%, according to Chainalysis and TRM Labs.
Binance outperformed the market thanks to extensive investments in compliance, automated monitoring, and cooperation with law enforcement.
According to analysis by Chainalysis and TRM Labs, the share of illicit transactions on the largest centralized crypto exchanges has fallen to record lows.
In June 2025, according to analytics, the share of transactions with illicit origins on the top seven crypto exchanges was estimated to be extremely insignificant—just 0.018% to 0.023%. In other words, over 99.97% of all transactions on these platforms comply with all legal regulations.
Binance deserves special attention. According to Chainalysis, only 0.007% of transactions on the platform could be linked to illicit activity. TRM Labs estimates this figure at 0.016%. Both figures are below the industry average. Binance processes trading volumes comparable to the combined volumes of its six largest competitors, while remaining a leader in terms of low suspicious transaction rates.
Reason for the Decline in Illegal Transactions
The decline in illegal activity is a direct result of the proactive efforts of industry players. Binance provides an example:
The company has established a compliance and risk management unit with over 1,280 employees (approximately 22% of its total full-time staff).
Binance has invested heavily in automated monitoring systems and advanced Know Your Customer (KYC) technologies.
In response to over 240,000 law enforcement inquiries, the company has conducted over 400 training and educational programs in various countries worldwide.
Binance has also participated in joint compliance initiatives with several exchanges, along with TRON, Tether, and TRM Labs.
In October, Binance announced it would allocate $283 million to compensate users who suffered losses due to asset destabilization during the crypto market crash on October 10, 2025.