Binance, the world's largest cryptocurrency exchange, reported a significant decline in its direct exposure to illicit cryptocurrency activity, even as global trading volumes and user engagement soared last year.
In its “State of the Blockchain 2025” report, the exchange said it has reduced the amount of blockchain on its blockchain. ofSince 2023, exposure to illicit funds in key categories has decreased by 96%. The company's compliance and related teams currently make up nearly a quarter of its workforce.
Beyond compliance, Binance has expanded into major markets, achieved $34 trillion in annual trading volume, and became the first global crypto platform to be fully licensed under the rules of the Abu Dhabi Global Market.
According to new data released by Chainalysis, this number comes in response to a sharp increase in crypto crimes in 2025 amid a surge in state activity and sanctions evasion. Over the course of the year, illegal cryptocurrency addresses cost at least $154 billion, an increase of 162% year-over-year and a record high. If the activities of sanctioned entities had not expanded, almost all major categories of illegality would have seen increases, and 2025 would still have exceeded previous records.
Binance helped authorities seize approximately $131 million in 2025
Binance in 2025 I was saved The agency recovered approximately $131 million related to illegal activity and processed more than 71,000 formal requests. The platform also provided more than 160 training sessions to equip law enforcement agencies with the skills to deal with illegal activities in digital assets.
From early 2023 to mid-2025, the exchange significantly reduced its direct exposure to illegal activity, but still maintained a processing volume comparable to that of the other top six exchanges combined. Essentially, much of what Binance processed was legal, with only a small number of transactions related to illegal activity.
Last year, the exchange's risk management system stopped $6.69 billion in potential fraud losses for 5.4 million users and helped more than 50,000 people recover $11.7 million. SB Seeker, Binance's head of APAC, commented on their efforts: “The focus in 2025 was on tangible results, including preventing $6.69 billion in potential fraud, strengthening market integrity, and supporting greater participation by institutional investors.”
The exchange also introduced more phishing simulations in 2025 and was able to reduce its phishing failure rate from 3.2% to 0.4%.
Additionally, the company's compliance team streamlined its enhanced due diligence (EDD) process in a 28-day sprint, reducing the number of steps from 14 to 4, reducing RFIs by more than 60%, and increasing both first-time pass rates and overall approvals by nearly 50%.
Binance has over 300 million users worldwide
Last year, the platform recorded $7.1 trillion in spot trades. This represents an 18% increase in average daily trading volume, reaching an all-time high of $145 trillion, with over 300 million users worldwide. The exchange's spot market consists of 490 coins and 1,889 trading pairs, while futures trading includes 584 coins. One of its features, Smart Money, also attracted 1.2 million users, and the demo trading tool reached 300,000 users.
The widespread use of tokenized funds as collateral has also increased institutional activity, with the platform seeing a 21% increase in institutional trading volume and a 210% increase in over-the-counter fiat trading.
Binance also reported a 38% increase in P2P and fiat trading volume and widespread adoption. Binance Pay users grew by 30%, over 20 million merchants accepted cryptocurrencies, and $1.2 billion was distributed through Binance Earn. With over $1 trillion in trading volume, Binance Alpha 2.0 attracted 17 million users and closed 270,000 fraudulent accounts during the airdrop event.
