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Binance now requires some foreign law enforcement requests to go through mutual legal assistance treaties, a procedural shift that police in five European countries say has slowed access to account data needed for crypto crime investigations, The New York Times reported July 28.
Binance rejects those claims, insisting the changes were introduced to comply with international regulations and privacy laws while maintaining cooperation with authorities.
The debate over Crypto law enforcement comes as governments worldwide intensify oversight of digital assets and seek faster collaboration from cryptocurrency platforms in cross-border investigations.
Binance, which processes billions of dollars in digital asset transactions every day, introduced a policy in April 2025 requiring certain law enforcement requests involving foreign accounts to follow procedures established under mutual legal assistance treaties.
According to investigators interviewed by The New York Times, the change represents a significant departure from Binance’s previous approach, when the company routinely worked directly with police agencies to freeze suspicious accounts and provide account information.
Officials from five European countries who attended a recent law enforcement conference in the Netherlands told the newspaper they had experienced greater difficulty obtaining information from Binance unless investigations involved child sexual abuse material, terrorism or an imminent threat to life.
The report also said some requests are now routed through authorities in the United Arab Emirates, where Binance is regulated, extending response times for investigators pursuing time-sensitive financial crimes.
The issue has become a growing concern for Crypto law enforcement, particularly in cases where stolen cryptocurrency can be moved across multiple wallets within minutes.
Alona Katz, an Assistant District Attorney in Brooklyn, said delays could directly affect criminal investigations.
“How fast you get your records determines the outcome of your case. It’s everything.” — Alona Katz, Assistant District Attorney, Brooklyn
Binance has rejected suggestions that it has weakened cooperation with authorities.
The company told The New York Times that its updated procedures are designed to ensure compliance with international regulations governing cross-border data sharing rather than reduce assistance to investigators.
Noah Perlman, Binance’s Chief Compliance Officer, acknowledged that international investigations may now require additional legal processes but insisted the company continues to work closely with authorities.
“In some cross-border cases, foreign law enforcement may be directed to the appropriate formal legal process.” — Noah Perlman, Chief Compliance Officer, Binance
Perlman added that Binance had actually strengthened its cooperation efforts.
“The company had increased its cooperation with law enforcement ‘while navigating the increasing complexity of governments as they seek to regulate crypto and data protection.'” — Noah Perlman, Chief Compliance Officer, Binance
According to Binance, domestic requests continue to be handled directly where appropriate, and the company remains committed to fulfilling obligations established under its 2023 settlement with the U.S. Department of Justice.
The exchange also denied any link between the policy changes and the Trump administration’s more crypto-friendly regulatory approach.
The investigation also highlights significant changes within Binance’s compliance operations.
Late last year, Binance reportedly fired or suspended several senior compliance employees after internal disagreements over investigations involving approximately $1.7 billion that officials believed had flowed from Binance accounts to Iranian entities.
Binance disputed those claims, saying the employees were not disciplined for raising compliance concerns. Nevertheless, the departure of several experienced compliance officials reportedly disrupted communication between investigators and the company.
According to people familiar with the matter cited by The New York Times, the staffing changes left some prosecutors uncertain about how to navigate new procedures for obtaining information.
The company later secured a licence to operate in Abu Dhabi, adding another layer to the discussion surrounding Crypto law enforcement because some information requests now reportedly pass through Emirati authorities.
Current and former law enforcement officials expressed concern that the arrangement could create delays, although Binance and Abu Dhabi regulators rejected suggestions that conflicts of interest exist.
The concerns come despite Binance’s extensive efforts over recent years to improve its compliance record.
Following its 2023 settlement with the U.S. Department of Justice, the exchange agreed to strengthen anti-money laundering controls after pleading guilty to compliance violations. The company paid $4.3 billion in penalties, while founder Changpeng Zhao served four months in federal prison.
Before the settlement was finalised, Binance had significantly expanded its compliance workforce, hiring hundreds of specialists, many of whom previously worked in U.S. and European law enforcement agencies. Officials previously told The New York Times that investigators could often obtain account information from Binance faster than from traditional banks.
However, prosecutors argue that maintaining rapid cooperation remains essential as cryptocurrency-related crime continues to evolve.
Manhattan District Attorney Alvin Bragg emphasised the importance of timely collaboration from major digital asset companies.
“For the sake of victims of crypto theft, it is important to have the timely and forthcoming cooperation from these massive, and highly profitable, cryptocurrency corporations.” — Alvin Bragg, Manhattan District Attorney
Primary source: The New York Times investigation by Michael Forsythe and David Yaffe-Bellany (July 28, 2026).
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