The New York Times reports that modifications to Binance's compliance protocols are complicating international law enforcement efforts to access user data.
By Olivier Acuna|Edited by Jamie Crawley Jul 28, 2026, 12:24 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on (Vadim Artyukhin/Unsplash)SummaryShow- According to The New York Times, Binance's new policy channels most foreign law enforcement inquiries through the United Arab Emirates and Mutual Legal Assistance Treaties, leading to delays in accessing user information.
- Investigators in Europe and U.S. prosecutors have expressed that these adjustments hinder efforts to track fraudulent activities, combat money laundering, and swiftly freeze or confiscate assets, although Binance still acts quickly in cases of child exploitation, terrorism, or imminent threats.
- Despite the criticism, Binance claims it continues to cooperate with authorities and positions the changes as enhanced safeguards aligned with regulated institutions, even amid ongoing scrutiny of its compliance practices.
In April 2025, Binance implemented a policy that has complicated the process for law enforcement in various countries seeking user information, as reported by The New York Times.
The leading cryptocurrency exchange "altered its cooperation methods with law enforcement globally, causing frustration among investigators who believe the changes obstruct efforts to uncover scammers and prevent money laundering," according to the NYT.
The NYT highlighted discussions from a June law enforcement conference in the Netherlands, where officials from five European nations reported challenges in obtaining data from Binance. However, the exchange continues to respond directly in urgent cases involving child sexual abuse materials, terrorism, or imminent danger to life.
Most other requests are now routed through the UAE government, where Binance operates under regulatory oversight, significantly extending response times, as noted by a senior European law enforcement official. Binance's regulated entities in the UAE function under the Abu Dhabi Global Market.
Alona Katz, an assistant district attorney in Brooklyn, remarked to the NYT, "How quickly you receive your records can affect the outcome of your case."
Under the new policy, foreign law enforcement must channel specific requests via Mutual Legal Assistance Treaties (MLATs), which facilitate formal evidence exchange between governments during criminal investigations but can lead to much longer timelines compared to direct collaboration with the exchange.
This shift marks a significant change from Binance's earlier practice, where it engaged directly with authorities to freeze suspicious accounts and provide information on users under investigation, the NYT reported.
A Binance spokesperson stated in an email to CoinDesk, "Binance has not reduced its cooperation with global law enforcement. Instead, we have increased our cooperation year over year, all while navigating the complexities of government approaches to crypto regulation and data protection."
The spokesperson emphasized that Binance prioritizes partnerships with law enforcement across the globe, including in the U.S. and Europe, and that its support "exceeds any legal obligations and what traditional financial services typically offer."
The spokesperson further added, "This change is a deliberate strengthening of our controls and safeguards on cooperation, aligning with the standards expected from a regulated institution."
The NYT's findings follow a similar report from The Information this month, which referenced a Justice Department memo advising federal prosecutors involved in crypto cases to anticipate reduced assistance from Binance in efforts to freeze or seize assets. Binance has denied any alterations in its cooperation with U.S. authorities.
The Justice Department has not yet responded to a request for comment on the memo from CoinDesk.
These reports come as Binance faces increased scrutiny over its compliance operations. Earlier this year, The Wall Street Journal and Fortune reported that the exchange had terminated compliance staff who were investigating transactions allegedly linked to Iran. Binance has refuted these claims and accused both outlets of relying on inaccurate or defamatory information.
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Crypto Flows, Share and the Selective Rotation
Crypto Flows, Share and the Selective Rotation
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
By CoinDesk ResearchJul 22, 2026Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
Why it matters:
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
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