Recent data from Chainalysis and TRM Labs indicates a significant decline in illicit cryptocurrency activity on centralized exchanges. This marks a major advancement in the industry’s maturity, particularly for Binance, which has consistently maintained exceptionally low exposure to illicit funds. The analysis highlights that Binance’s robust compliance and monitoring measures have been instrumental in achieving this progress. 0.018-0.023% of total activity linked to illicit addresses on the seven largest exchanges was recorded as of June 2025, representing a substantial drop compared to levels seen two years ago. Chainalysis found that Binance’s direct exposure – the percentage of its activity touching wallets involved in verified illicit activities – stood at just 0.007%, 2.5 times lower than the average for other top exchanges. TRM Labs, meanwhile, reported Binance recording 0.016% direct exposure compared to a global average of 0.023%. This data underscores Binance’s consistent success in reducing illicit activity and its significant impact on industry standards. While crypto has historically faced scrutiny, traditional financial channels still facilitate trillions in illicit transactions annually, according to NASDAQ, the UN, and IMF. The discrepancies in reported figures can be attributed to differences in attribution datasets and clustering methods used by Chainalysis and TRM Labs. However, both firms agree that illicit activity in cryptocurrency is minimal and that Binance has significantly contributed to its decline. Binance’s performance since 2023 shows a remarkable 96-98% reduction in illicit exposure. This achievement, achieved while processing volumes comparable to the six largest exchanges combined daily, highlights its commitment to user protection and responsible growth within the industry.