Binance
February 21, 2026
Prominent cryptocurrency exchange, Binance, says its exposure to sanctioned entities has shrunk dramatically. It fell to just 0.009% of its total trading volume. The company claims this marks a 97% sanctions reduction since January 2024. This is a sharp shift for a platform that once faced intense scrutiny over alleged gaps in its compliance controls.
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Why Binance Sanctions Exposure Fell 97% Amid Compliance and Regulation Shifts
The drop is quite visible. According to Binance, direct exposure to four major Iran-based cryptocurrency exchanges dropped from $4.19 million in early 2024 to roughly $110,000 as of January 2026. This two-year period highlights a major contraction that does not occur easily or quietly. It shows the intense pressure from regulators and an exchange that has been willing to align with them. The exchange further wrote,
“Binance outperformed 10 major global exchanges peers in managing direct exposure to the 4 major Iranian exchanges. Specifically, Binance further improved its effective sanction related controls, decreasing its already low risks compared to our peers.”
This comes after weeks of uncomfortable headlines. A recent report by Fortune claimed internal investigators had flagged sanctions risks involving Iranian users. They were later pushed out. Binance pushed back quickly and called the claims false. The cryptocurrency exchange even pointed out that no one was dismissed for raising compliance concerns. Instead, Binance revealed that some employees left after violating internal data protection policies.
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Binance’s exposure to Iran has been significant. An investigation from 2022 found that $8 billion in cryptocurrency transactions flowed between Binance and Iranian-linked entities. About $7.8 billion was tied to Nobitex, Iran’s largest crypto exchange. This platform handled about 70% of the country’s crypto activity.
Behind the scenes, Binance compliance has grown in operation. The exchange says roughly 25% of its global workforce now works in compliance-related roles. This is a notable shift for a firm that had growth and expansion on its cards.
The regulatory environment has also changed over the years. After Binance agreed to a $4.3 billion settlement with U.S. authorities in 2023 for anti-money laundering and sanctions violations, the exchange entered a new phase.
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In addition, crypto exchanges globally are also strengthening controls. This is because crypto regulation has started to evolve across the U.S., Europe, and Asia. Governments are pushing exchanges to verify users more aggressively and block sanctioned actors in real time.
