Binance, a leading cryptocurrency exchange, has disclosed its investment of $213 million in its compliance program in 2023 to address fraud and bolster security measures.
This information was provided in a statement by Romaana Sutton, representing JNPR, the public relations agency of Binance.
The exchange emphasized the significant increase in funding as a proactive measure to protect its platform and users from fraudulent activities in the cryptocurrency space.
Over the span of 2022 to 2023, Binance increased its commitment to compliance from $158 million to $213 million, marking a 35% rise.
The company also allocated resources to recruit top talent, develop or acquire cutting-edge technology, and implement effective policies and procedures. Binance stated its continuous monitoring of transaction flows both on and off its platform through a combination of automated and manual methods.
In 2023, it enhanced its transaction monitoring capabilities, with its on-chain monitoring team processing 677,772 on-chain alerts. By implementing new automation tools, Binance achieved a 150% increase in the productivity of on-chain transaction monitoring.
Additionally, the company disclosed its analysis and closure of 2,648,318 off-chain alerts in 2023, achieving a 40% increase in productivity compared to the previous year.
The 2024 Crypto Crime Report by Chainalysis revealed a decrease in cryptocurrency-related crime in 2023, with the total value of assets received by illicit addresses dropping from $39.6 billion to $24.2 billion.
The report attributed this decline to enhanced collaborative security efforts within the crypto industry, improved defenses, and closer cooperation with law enforcement agencies.
It also suggested that increased awareness among crypto users about scams and fraud contributed to this trend.
