Binance Slashes Sanctions Risk by 97% After Major Compliance Overhaul

<a href="https://minority-mindset.com/bnb-usd/">Binance</a> Says Sanctions Risk Dropped 97% After Compliance Reforms

Key Highlights

Sanctions-related exposure fell from 0.284% to 0.009% between January 2024 and July 2025.
Over 1,500 employees, roughly 25% of the global workforce, work in compliance roles.
CZ emphasizes that Binance uses data-driven processes to maintain industry-leading compliance.

Binance, a major cryptocurrency exchange, has published a comprehensive report explaining how it works to follow global rules and prevent illegal activity, after some news outlets raised concerns about its efforts to manage risks related to sanctions.

Compliance Program Overview

Binance maintains that its systems for following rules and preventing illegal activity are among the best in the industry and are constantly improving. They state that when they identify potential risks, they thoroughly investigate, take steps to reduce those risks, close accounts if necessary, and report issues to the relevant authorities.

Binance says its new security measures have significantly lowered the risk of illegal activity on the platform. They reported a drop in suspicious trading from 0.284% in January 2024 to only 0.009% in July 2025 – a decrease of 96.8%.

The company has responded to recent reports about its compliance practices, calling them inaccurate. They state these reports are based on false information from former employees who were dismissed and don’t accurately portray how compliance functions within the cryptocurrency industry. CEO Changpeng Zhao said that while some media outlets are relying on negative stories from these former employees, Binance focuses on data, and he believes their compliance program is the best in the industry.

Investment in Compliance

Binance has been significantly investing in both its compliance systems and its team. In the last two years, they’ve focused on:

Expanded sanctions screening and transaction monitoring controls
Invested hundreds of millions of dollars in compliance infrastructure
Built one of the largest compliance teams in the digital-asset industry
Enhanced governance independence and board oversight

Binance currently employs 593 people dedicated to its Compliance team. In addition, 978 more employees and contractors across departments like customer support, tech, and product also work on compliance-related tasks.

Over 1,500 Binance employees – roughly a quarter of its entire global team – are dedicated to ensuring the company follows regulations and guidelines.

These teams focus on issues like sanctions, preventing the funding of terrorism, and investigating financial crimes. They’re backed by departments that handle oversight, ensure quality, and provide training. Binance states that all investigations into compliance are carried out independently, and decisions are based on the law and standard processes – not on business considerations.

Licenses, Reviews, and Law Enforcement Cooperation

Binance is authorized to operate in 20 countries and regions worldwide, with complete approval from the financial regulator in Abu Dhabi (ADGM).

In the last year and a half, Binance has faced numerous checks from both outside experts and its own internal teams, as well as inspections by regulatory bodies in different countries. According to Binance, these reviews are designed to improve how the company is run, verify customers more effectively, better assess risks, and enhance its monitoring systems.

Working with police around the world, Binance says it helped recover over $131 million in illegally obtained money and answered more than 71,000 requests from law enforcement agencies in 2025. They also provided over 160 training sessions for police officers and other law enforcement staff.

Sanctions Management and Risk Reduction

Binance says its system for following sanctions rules is among the strongest in the cryptocurrency world. By carefully checking users and transactions, monitoring wallets, and identifying risky patterns, the exchange has lowered its involvement with sanctioned individuals and high-risk areas.

Between January 2024 and January 2026, activity on Iranian cryptocurrency exchanges dropped dramatically, falling over 97% from $4.19 million to just $110,000. Binance reported that its handling of this situation was better than that of ten other leading cryptocurrency platforms.

The company explained that because people can send cryptocurrency to exchanges without permission, there’s always some risk involved. That’s why it’s crucial to continue watching and managing transactions even after they’ve been received to ensure everything stays compliant.

Response to Recent Press Reports

Binance has addressed recent news reports about its handling of sanctions, stating that the coverage didn’t fully and accurately represent the situation. The company investigated two users mentioned in those reports and found that, at the time, neither was on any sanctions list. Additionally, Binance’s usual monitoring systems didn’t flag any concerns about these users.

The exchange stated it responded immediately after receiving reliable information, promptly deleting accounts and notifying the relevant authorities. Binance also confirmed that its security measures successfully detected and limited any hidden connections to sanctioned individuals or groups.

Employee Matters

Reports claimed Binance let employees go because they voiced concerns about the company following rules. However, Binance said these departures were actually due to violations of their internal policies regarding data security and keeping information confidential, and were not related to the employees raising those concerns.

Conclusion

Binance states that it has a robust and constantly evolving compliance program. The company is committed to ongoing risk monitoring, collaboration with regulators, and adherence to compliance standards to ensure user protection and platform security.

2026-02-23 09:23