Binance policy change complicates law enforcement access to user data

Binance implemented a policy in April 2025 that complicates law enforcement agencies' ability to obtain user information, according to a report. The world's largest cryptocurrency exchange altered its cooperation methods with authorities, leading to frustrations among investigators who claim it has become more challenging to combat scams and money laundering. During a June law enforcement conference in the Netherlands, police officials from five European countries expressed difficulties in obtaining information from Binance. The exchange continues to respond to cases involving child sexual abuse material, terrorism, or imminent threats to life. However, most other requests are now routed through the United Arab Emirates government, where Binance operates under regulatory oversight, significantly increasing response times. Under the new policy, foreign law enforcement must use Mutual Legal Assistance Treaties (MLATs) for certain requests, which can prolong the process compared to direct cooperation. This marks a shift from Binance's previous approach of directly working with authorities to freeze suspicious accounts. A Binance spokesperson stated that the company has not reduced its cooperation with global law enforcement and continues to prioritize collaboration. The report follows a similar account warning U.S. prosecutors to expect less assistance from Binance in crypto cases. The Department of Justice has not commented on the memo.

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