Illegal activity on crypto exchanges has fallen to a record low

Key points:

• The share of illegal transactions on major crypto exchanges has fallen to record lows — just 0,018–0,023%, according to Chainalysis and TRM Labs.
• Binance showed the best result on the market thanks to large-scale investments in compliance, automated monitoring, and cooperation with law enforcement agencies.

According to the analysis by Chainalysis and TRM Labs, the share of illegal transactions on the largest centralized crypto exchanges has fallen to record lows.

In June 2025, according to the analysis, the share of transactions of illegal origin on the seven leading crypto exchanges was estimated to be extremely insignificant — only 0,018% to 0,023%. In other words, over 99,97% of all transactions carried out on these platforms comply with all legal norms.

Binance deserves special attention. According to Chainalysis, only 0,007% of transactions on the platform can be linked to illegal activity. TRM Labs estimates this figure at 0,016%. Both values are below the industry average. At the same time, Binance processes trading volumes comparable to the combined volumes of its six largest competitors, while remaining the leader in terms of low levels of suspicious transactions.

Reason for the decrease in the percentage of illegal transactions

The decline in illegal activity was a direct result of the active work of industry representatives. Binance is a case in point:

• The company has formed a regulatory compliance and risk management division with over 1280 employees (approximately 22% of its total staff).
• Binance has invested heavily in automated monitoring systems and advanced Know Your Customer (KYC) technologies.
• In response to more than 240 000 requests from law enforcement agencies, the company has conducted over 400 training and educational programs in various countries around the world.
• Binance has also participated in joint compliance initiatives with several exchanges, including TRON, Tether, and TRM Labs.

In October, Binance announced that it would allocate $283 million to compensate users who suffered losses due to asset destabilization during the crypto market crash on October 10, 2025.