Binance, the world’s largest cryptocurrency exchange, has implemented changes to its cooperation with law enforcement that have complicated efforts to investigate fraud and money laundering, according to police officials and prosecutors in multiple countries. The adjustments, introduced in April 2025, require many law enforcement requests for user information to be routed through international treaties and foreign government agencies, adding delays that have frustrated investigators.

This new policy marks a departure from Binance’s earlier approach. Previously, the company worked closely with authorities, swiftly freezing suspicious accounts and providing customer data. Following a 2023 agreement with U.S. authorities that included a $4.3 billion penalty for compliance failures, Binance pledged to enhance its anti-money-laundering controls and maintain strong cooperation with law enforcement agencies.

Since last year, requests from European officials for account information outside their jurisdictions must be handled through mutual legal assistance treaties, which can prolong response times. Many European investigators reported that requests are now routed primarily through the government of the United Arab Emirates, where Binance holds its regulatory license, significantly slowing the exchange of information.

Law enforcement officials at a recent conference in the Netherlands noted that Binance generally responds only to inquiries involving child exploitation, terrorism, or imminent threats to life. A senior European official said most routine requests face lengthy bureaucratic hurdles due to this new process.

In the United States, the situation differs somewhat. Law enforcement agencies are generally exempt from the treaty-routing requirement, but specific state prosecutors have experienced delays when Binance requested that their inquiries be processed through other jurisdictions. Brooklyn Assistant District Attorney Alona Katz said that while the company often responds quickly, it has been difficult to obtain documents for accounts registered in the UAE. Katz stressed that in fast-developing cases, timely access to records is critical for recovering stolen assets.

Manhattan District Attorney Alvin Bragg emphasized the importance of prompt cooperation from cryptocurrency exchanges, highlighting the impact on victims of crypto theft.

The policy shift has come amid a period of significant change in Binance’s compliance team. Late last year, the exchange dismissed or suspended several senior compliance employees who had raised concerns about transactions totaling $1.7 billion originating from Binance accounts to Iranian entities. Binance disputed the accuracy of those allegations and stated that the personnel changes were not punitive responses to raised concerns. The departure of experienced compliance staff has reportedly led to internal confusion about handling law enforcement requests.

Binance’s chief compliance officer, Noah Perlman, stated that the company remains committed to legal obligations and law enforcement cooperation despite the increasing complexity of cross-border investigations and evolving data privacy regulations. He noted that when authorities seek data on accounts within their own countries, Binance continues to work directly with them.

Some law enforcement officials have expressed concern about potential conflicts of interest due to Binance’s recent licensing in Abu Dhabi, where regulatory requests may be influenced by local authorities connected to an investment firm affiliated with Binance. Binance and its regulators have denied any conflict, emphasizing their dedication to countering financial crime.

Earlier this year, reports surfaced that Binance planned to broaden the scope of requests requiring formal treaty processes within the U.S., alarming prosecutors. The company ultimately decided not to implement these changes after consultations with the Justice Department.

The evolving relationship between Binance and global law enforcement highlights ongoing challenges in regulating cryptocurrency platforms and balancing privacy with crime prevention in an increasingly complex and international digital financial landscape.