In a significant development for the cryptocurrency sector, Binance has announced a historic low in its engagement with illegal wallets, positioning itself ahead of other centralized platforms. This statement comes from the company during an interview with Incrypted, highlighting a broader trend of diminishing illicit activities across the industry.
New findings from Chainalysis and TRM Labs indicate a sharp decline in illegal activities on centralized exchanges from early 2023 through mid-2025. As of June 2025, illicit transactions on the seven largest centralized exchanges accounted for a mere 0.018% to 0.023% of total transaction volumes, marking a significant advancement in anti-money laundering (AML) protocols and crime detection capabilities. In stark contrast, only 0.007% of the transactions conducted by Binance during June were linked to illegal wallets, a figure that is more than 2.5 times lower than the global average across similar platforms.
Further corroborating these findings, an independent analysis by TRM Labs revealed that Binance recorded 0.016% of its transactions as illicit, while the average for other major exchanges stood at approximately 0.023%, reflecting a 30% higher rate of illicit activity.
Examining the long-term trends, from January 2023 to June 2025, Binance successfully reduced its direct interactions with illegal wallets by an impressive 96% to 98%. This achievement surpasses the average reductions observed among six other leading platforms by 4 to 5 percentage points. Binance emphasized the importance of this reduction, stating that it not only protects users and investors but also fosters broader adoption of cryptocurrencies by establishing a safer, more transparent, and well-regulated market environment.
With daily transaction volumes exceeding $90 billion and approximately 217 million trades taking place each day, maintaining such low exposure to illicit funds is particularly noteworthy for Binance. The company”s commitment to compliance and transparency is seen as a crucial factor in enhancing the overall integrity of the cryptocurrency market.
