According to a new report from Binance, the usage of crypto for illicit transactions is declining rapidly.
Crypto is used extensively on the Dark Web for trading in malware, CSAM, stolen data and more.
Binance says that working with authorities and using methods that detect criminal transactions with AI have led to a drop in illicit transactions.
According to Binance, one of the world’s largest cryptocurrency exchanges, the usage of cryptocurrencies for criminal means is on the decline around the world, a positive step for the industry which could eliminate some investor concern.
“Once a prominent concern for regulators and users, illicit transaction volumes now represent only a shrinking fraction of global digital-asset activity as exchanges, analytics providers, and law-enforcement agencies continue to strengthen industry safeguards,” said Binance in an announcement.
The company points out analysis from Chainalysis and TRM Labs that show a “significant decline” in illicit activity on centralised exchanges. Cryptocurrency, especially Bitcoin, is almost exclusively used on the Dark Web to make untraceable transactions, usually for illegal material or illegal services.
Examples include buying malware, buying child sexual abuse material (CSAM), buying stolen private user information, buying drugs or even hiring contract killers, all of which is paid for with crypto on deep net sites.
“As of June 2025, the seven largest centralised exchanges by volume recorded just 0.018–0.023% of total transaction activity linked to illicit addresses – a historic improvement compared with levels observed two years prior,” said Binance, which according to CoinMarketCap, has the highest trading value and weekly user visits of all crypto exchanges in the world.
It added that it has “played a central role in this progress, achieving the largest reduction in illicit transaction share while maintaining the industry’s deepest liquidity pool.”
Chainalysis found in June 2025, that as little as 0.007 percent of Binance’s transaction volume was directly linked to wallets associated with illicit activity. This means that just over $1.3 million of the exchange’s transaction volume is being used by criminals. Compared to the $20 billion of the full volume, it seems a tiny amount but more than enough to continue sustaining a black market.
Especially if you take into account the number of, again, tiny percentages of trading volumes involved in illicit transactions among the hundreds of other crypto exchanges. The market is there, but shrinking steadily as exchanges the world over continue complying with authorities.
For Binance, it says it managed to reduce transactions on its exchange involved with direct exposure to illicit flows by 96 percent between January 2023 and June 2025.
“Binance has responded to over 240,000 law enforcement requests and conducted 400+ training sessions for investigators worldwide, sharing insights on blockchain tracing and fraud prevention,” it said, adding that it has methods that can identify and freeze illicit funds before they can circulate further.
“Leveraging advanced analytics, AI, and machine learning, Binance has enhanced the precision of its monitoring systems, reducing false positives and improving the detection of illicit transactions.”
[Image – Photo by Pierre Borthiry – Peiobty on Unsplash]
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