Binance, the world’s largest cryptocurrency exchange, has implemented a new policy that is slowing down law enforcement agencies’ access to user information, according to reports from The New York Times.
Policy shift routes data requests through the UAE
Since April 2025, Binance has required most foreign law enforcement inquiries to be processed via the United Arab Emirates (UAE) under the framework of Mutual Legal Assistance Treaties (MLATs). This represents a significant change from Binance’s previous approach, which involved direct cooperation with authorities in investigating scams and freezing suspicious accounts.
This adjustment now means that European investigators and U.S. prosecutors must rely on international governmental channels to access user data in criminal cases, causing delays in evidence gathering and asset seizure proceedings. At a law enforcement conference held in June in the Netherlands, officials from five European countries highlighted the difficulties this policy has created for cross-border investigations.
A senior European law enforcement official reported that, except cases involving child sexual abuse, terrorism, or immediate threats to life, most data requests are being rerouted through UAE authorities, extending typical response times.
Mini dictionary: Mutual Legal Assistance Treaties (MLATs) are agreements between countries to formally request and share evidence or information in criminal investigations, often resulting in longer processing times compared to direct cooperation between companies and law enforcement.
How fast you get your records determines the outcome of your case, stated Alona Katz, an assistant district attorney in Brooklyn.
Binance defends compliance changes
Binance has maintained that its commitment to global law enforcement remains unchanged, contending that the updated procedures reflect stronger safeguards. The exchange’s spokesperson explained that collaboration with authorities continues in the U.S., Europe, and other markets, going “beyond any legal obligation upon us and what traditional financial services firms typically do.”
“This is a deliberate strengthening of the controls and safeguards that govern how we cooperate, which is consistent with the standards expected of a regulated institution,” the spokesperson stated.
Rising scrutiny and market context
Binance, founded in 2017 and known for offering trading of hundreds of cryptocurrencies, has operated under increasing international regulatory scrutiny over the past two years. Reports from The Wall Street Journal and Fortune previously alleged that Binance dismissed compliance staff who investigated certain sanctioned transactions, claims the company has denied. Binance argued these reports contained inaccuracies.
The United States Department of Justice (DOJ) has also anticipated decreased cooperation from Binance, according to an internal memo cited by The Information this month. While Binance rejected suggestions of reduced assistance to U.S. authorities, the exchange has continued to face questions regarding its global compliance operations.
Amid these changes, Binance has managed to maintain a dominant market position, holding approximately 55% of user funds and a 24% spot market share. The company attracted net inflows in early July, even as other platforms experienced significant outflows.
| Exchange | User Funds Share (%) | Spot Market Share (%) | Trend (July) |
|---|---|---|---|
| Binance | 55 | 24 | Net inflows |
| Other tracked markets | 45 | 76 | Net outflows |
The developments reflect a complex landscape for cryptocurrency exchanges striving to balance regulatory obligations, user privacy, and the needs of international law enforcement.
