Binance makes fighting crypto crime more difficult, says new report

According to a recent report by The New York Times, Binance implemented a policy change in April 2025 that requires most foreign law enforcement requests for user data to be routed through the United Arab Emirates (UAE) and formal Mutual Legal Assistance Treaties (MLATs). This new process significantly slows down access to information. European investigators and U.S. prosecutors have indicated that these changes make it more difficult to track scammers, combat money laundering, and act quickly to freeze or seize assets. However, Binance continues to cooperate directly on urgent cases involving child sexual abuse material, terrorism, or imminent threats to life.

The NYT report highlighted discussions at a June law enforcement conference in the Netherlands, where officials from five European countries expressed frustration over the increased difficulty in obtaining records from Binance. Instead of the previous direct cooperation, requests must now be filtered through Binance’s regulated entities in the Abu Dhabi Global Market, which has led to longer response times. Alona Katz, an assistant district attorney in Brooklyn, emphasized that prompt access to records is critical to effective criminal investigations. The use of MLATs, while formal, tends to prolong the exchange of information compared to direct engagement.

In response, Binance stated that it has not reduced its overall cooperation with law enforcement but rather strengthened controls in line with regulated financial institutions’ standards. The company claims its collaboration has increased year over year despite the growing regulatory complexity surrounding crypto. Binance asserts its cooperation with authorities in the U.S. and Europe goes beyond legal obligations and typical financial industry practices.

This report follows a similar story from The Information, which mentioned a Justice Department memo warning prosecutors to expect decreased assistance from Binance in freezing or seizing assets, a claim Binance denies. The scrutiny of Binance’s compliance practices continues amid past allegations by other media outlets that it dismissed employees investigating suspicious transactions linked to Iran, allegations the exchange has rejected as false and defamatory. The NYT and these developments underscore ongoing tensions between regulators and Binance over transparency and regulatory compliance in the crypto space.