Binance policy change slows foreign police requests for user data, NYT reports

Policy shift channels requests through the UAE

According to the report, Binance now routes most foreign law enforcement requests through the United Arab Emirates, where it has regulated operations. Its UAE entities operate under Abu Dhabi Global Market. In practice, that means agencies seeking certain user records must rely on Mutual Legal Assistance Treaties, or MLATs, instead of direct cooperation from the exchange.

MLATs are formal agreements used by governments to exchange evidence in criminal investigations. They can provide a structured legal path for requests, but they generally take longer than direct disclosures from a company. The New York Times said this has substantially increased response times for many requests.

Investigators say speed matters in crypto cases

The newspaper said concerns were raised during a June law enforcement conference in the Netherlands, where police officials from five European countries described difficulties obtaining information from Binance. The exchange still responded directly in cases involving child sexual abuse material, terrorism or an imminent threat to life, the report said.

Officials cited by the paper said delays can affect the outcome of investigations, especially when assets can be moved quickly. “How fast you get your records determines the outcome of your case,” Alona Katz, an assistant district attorney in Brooklyn, told The New York Times.

The new approach marks a shift from Binance’s earlier practice, under which it reportedly worked directly with authorities to provide user information and freeze suspicious accounts connected to investigations.

Binance says cooperation has not been reduced

Binance disputed the idea that it has pulled back from helping authorities. In comments to CoinDesk, a spokesperson said the company “has not slowed its cooperation with global law enforcement” and instead has increased cooperation year over year.

The company said it continues to prioritize work with agencies in the U.S., Europe and elsewhere, and described the revised procedure as a strengthening of internal controls and safeguards. Binance said the changes are consistent with the standards expected of a regulated institution and reflect the growing complexity of crypto regulation and data protection rules.

Broader scrutiny around compliance

The New York Times report follows a separate account published earlier this month by The Information, which said a Justice Department memo warned federal prosecutors handling crypto cases to expect less help from Binance when trying to freeze or seize assets. Binance denied that its cooperation with U.S. authorities had changed. The Department of Justice did not immediately respond to CoinDesk’s request for comment on that memo.

The issue also lands amid continued scrutiny of Binance’s compliance operations. Earlier this year, The Wall Street Journal and Fortune reported that the exchange had dismissed compliance employees who investigated transactions allegedly linked to Iran. Binance denied those allegations and said both publications relied on false or defamatory claims.

The dispute highlights a broader tension between formal legal process and the speed investigators often seek in crypto cases. Authorities say delays can hamper efforts to trace funds and preserve assets, while Binance says the tighter procedures are part of operating as a regulated institution.