At the Cyberport Blockchain Security Summit 2025 in Hong Kong, industry professionals and regulators convened to address the evolving landscape of crypto-related crime. Binance, represented by Nils Andersen-Röed, Global Head of the Financial Intelligence Unit (FIU), shared critical insights into the state of cryptocurrency crime, compliance efforts, and the collaborative path forward.
The discussion underscored a maturing crypto ecosystem where innovation, regulation, and security are converging to protect users globally.
Andersen-Röed began by framing the web3 and crypto industry’s progress through the lens of “crossing the chasm”—the transition from early adopters to the early majority.
In 2024, the blockchain and crypto sector achieved this milestone, driven by U.S. regulatory advancements, growing institutional engagement, and heightened interest from governments and corporations.
However, this mainstream adoption has attracted not only legitimate players but also sophisticated criminals.
As Andersen-Röed noted, “Criminals obviously also saw this,” exploiting the influx of new, often unprepared users in a high-stakes digital environment.
The misuse of cryptocurrency has grown more complex, moving beyond early darknet transactions to highly organized, global operations.
Andersen-Röed highlighted large-scale scam call centers in Southeast Asia, which use crypto to transfer defrauded funds and are sometimes linked to human trafficking.
Ransomware attacks have also escalated, with criminals targeting larger entities and demanding ransoms exceeding $1 million.
To obscure their tracks, bad actors employ mixing services, privacy-enhancing tools, and cross-chain bridges, routing stolen funds through high-risk exchanges, OTC brokers, or even compromised accounts on legitimate platforms.
Emerging threats like AI-powered scams, leveraging deepfakes and automated phishing, further complicate the landscape, lowering the barrier to entry for cybercriminals.
In response, Binance has fortified its compliance framework, offering a model for regulated exchanges.
At its core is a robust Know Your Customer (KYC) protocol, ensuring only verified users can transact.
Advanced screening tools cross-reference user data against global sanctions lists and databases of politically exposed persons (PEPs), proactively blocking high-risk or sanctioned individuals.
Real-time transaction monitoring, powered by machine learning, flags suspicious activities like abnormal transfer patterns or links to illicit wallets.
Binance also collaborates closely with law enforcement, filing suspicious activity reports (SARs) and aiding global authorities to address illegal behavior swiftly.
This multi-layered approach enables Binance to detect, respond to, and prevent illicit activity at scale.
Despite the focus on crypto crime, Andersen-Röed emphasized its relatively small scope.
Blockchain analytics firm Chainalysis reports that illicit transactions account for less than 1% of total crypto volume, compared to 2-5% of global GDP ($2 trillion annually) laundered through traditional financial systems.
Blockchain’s transparency aids in tracking bad actors, offering an advantage over seemingly more opaque fiat systems.
Moreover, while crypto adoption has surged, illicit activity has not risen proportionally, signaling the effectiveness of compliance and regulatory efforts.
Looking to 2025, Andersen-Röed flagged emerging challenges, including cross-chain laundering and the use of EVM-compatible blockchains with limited attribution tools.
These tactics, combined with AI-driven scams, demand smarter compliance tools and stronger industry collaboration.
He stressed that combating financial crime requires a united effort across crypto, traditional finance, and governments.
The Cyberport Summit underscored a vital development: as cryptocurrency transitions from niche to mainstream, its future hinges on security, transparency, and integrity.
Binance’s insights reflect an industry maturing steadily, balancing innovation with defenses to build a a more resilient ecosystem for all types of consumers and organizations.