#DiversifyYourAssets To combat the growing sophistication of crypto-related crimes, exchanges like Binance have significantly enhanced their compliance infrastructure. Andersen-Röed presented Binance’s compliance controls as a representative model of what major regulated exchanges are doing today.

At the foundation of this framework is Know Your Customer (KYC) – a set of protocols ensuring that only verified individuals are allowed to transact. This robust identity verification process plays a crucial role in reducing anonymity-based risks, helping to confirm that users are who they claim to be.

Building on that, Binance has implemented advanced screening against global sanctions lists. Our tools cross-reference user information with hundreds of databases around the world, including those tracking sanctioned individuals and politically exposed persons (PEPs). This screening not only helps flag high-risk users before they can engage in illicit activity but also allows Binance to proactively block users from sanctioned regions, ensuring compliance with international regulations and reducing exposure to geopolitical risk.

Complementing these checks is Binance’s real-time transaction monitoring system, which uses machine learning to analyze activity on the platform as it happens. Suspicious behaviors, such as abnormal transfer patterns or links to illicit wallets, are flagged immediately, allowing for swift intervention and investigation.

Finally, Andersen-Röed underscored the importance of collaboration with law enforcement. Binance routinely files suspicious activity reports (SARs) and works with authorities around the world to ensure illegal behavior is not only detected, but properly reported and addressed.

Implemented together, these tools form a multi-layered compliance approach that enables Binance and other exchanges to detect, respond to, and prevent illicit activity at scale, safeguarding the crypto space as it continues to mature.