CoinDesk
Binance adopted a policy in April 2025 that routes most foreign law enforcement requests through the United Arab Emirates and Mutual Legal Assistance Treaties, the New York Times reported Tuesday, citing a June law enforcement conference in the Netherlands where police officials from five European countries described mounting delays in obtaining user data.
The world's largest cryptocurrency exchange had previously worked directly with authorities to freeze suspicious accounts and hand over user information. Under the new policy, most non-emergency requests must travel through the UAE government, where Binance's regulated entities operate under the Abu Dhabi Global Market framework, then onward through MLAT channels, a formal but slow treaty process that can take months longer than direct cooperation. Binance still responds directly in cases involving child sexual abuse material, terrorism, or imminent threats to life, according to the report.
"How fast you get your records determines the outcome of your case," Alona Katz, an assistant district attorney in Brooklyn, told the NYT. "Binance has not slowed its cooperation with global law enforcement," a spokesperson said in an email to CoinDesk, framing the new procedures as "a deliberate strengthening of the controls and safeguards" consistent with a regulated institution.
Why it matters
The policy turns Binance into a harder target for the routine cases that make up the bulk of cross-border crypto enforcement: pig-butchering scams, money laundering chains, and asset seizures tied to fraud. A Justice Department memo reported by The Information this month warned federal prosecutors handling crypto cases to expect less assistance from Binance when freezing or seizing assets, a read consistent with the NYT account. Binance has denied that its cooperation with U.S. authorities has changed. The exchange also continues to face scrutiny over earlier reports that it dismissed compliance employees who flagged transactions allegedly tied to Iran, claims Binance denies.
Market impact
The compliance shift lands while Binance still commands the dominant share of global crypto trading.
Frequently asked questions
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What did Binance change about how it handles law enforcement requests?
In April 2025, Binance adopted a policy that routes most foreign law enforcement requests through the United Arab Emirates and Mutual Legal Assistance Treaties, rather than responding directly. Direct cooperation still applies to cases involving child sexual abuse material, terrorism, or imminent threats to life.
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How much slower is the new process for foreign investigators?
Requests now travel through the UAE government, where Binance's regulated entities operate under Abu Dhabi Global Market, then onward through MLAT channels. The NYT cited a senior European law enforcement official saying the change substantially increased response times compared with old direct cooperation.
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Why does the Justice Department care about Binance's compliance changes?
A DOJ memo reported by The Information warned federal prosecutors handling crypto cases to prepare for less assistance from Binance when seeking to freeze or seize assets. Binance has denied that its cooperation with U.S. authorities has changed.
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Has Binance denied the allegations in the New York Times report?
A Binance spokesperson told CoinDesk that the company has not slowed cooperation with global law enforcement and has actually increased it year over year. The spokesperson framed the new procedures as stronger safeguards consistent with a regulated institution.
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What is Binance's current share of the crypto market?
Binance held roughly 55% of user funds and around 24% of spot market share through the repositioning since June 2025, and drew net inflows in early July while the broader tracked market saw outflows, suggesting the compliance friction has not yet meaningfully shifted trading share.
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