Binance, the world's largest cryptocurrency exchange, has attributed the decline in crypto-related crime in 2023 to its collaborative efforts with law enforcement agencies. The company stated that industry-wide initiatives aimed at enhancing security and compliance led to a decrease in several key crypto crime metrics between 2022 and 2023.
According to a recent report from blockchain analytics firm Chainalysis, Binance noted in a Feb. 9 post on its website that both the total value of funds received by illicit digital asset wallets and the share of illicit transactions out of total crypto transactions decreased in 2023 compared to 2022. Binance credited this drop to "the crypto industry as a whole stepping up its collaborative security efforts, perfecting its defenses, and tightening its collaboration with law enforcement agencies." Furthermore, Binance mentioned that crypto users are becoming more aware of fraud and scams.
In the same post, Binance emphasized its ongoing commitment to strengthen its security systems and improve its ability to monitor transactions in order to combat digital asset-related crime. The company also underscored the training sessions it conducts with law enforcement agencies worldwide to share strategies for tackling cybercrime. "We invested tremendous effort and resources in countering criminal activity last year – and continue doing so every day," said Binance. In 2023 alone, Binance responded to over 58,000 law enforcement requests and held 120 law enforcement training sessions.
Binance referenced Chainalysis' report which found that illicit transactions accounted for only 0.34% of all crypto transactions in 2023, a decrease from 0.42% in 2022. "This estimate demonstrates that only a fraction of percent of all crypto transactions were linked to criminal activity or sanctioned entities in 2023," stated Binance. This indicates that "the digital-asset space has been an extremely unwelcoming place for bad actors, even more so than in 2022," Binance added, contrasting this with the misconceptions some people still hold about crypto being a place of rampant lawlessness.
Binance highlighted several instances of its collaborative crime-fighting efforts in 2023. Working alongside the National Bank of Tajikistan and blockchain analytics firm TRM Labs, Binance assisted in an operation that led to the arrest of multiple members of the terrorist organization Islamic State – Khorasan Province. The company also supported the Royal Thai Police in disrupting global criminal networks responsible for multi-million-dollar scams.
According to CoinMarketCap, Binance was launched in 2017. As of August 2022, it had a daily trading volume of approximately $76 billion, making it the largest crypto exchange globally. Binance lists over 350 tokens and allows users to buy, sell, and store digital assets.