Binance Decision Shakes Global Investigations: New Barrier in Data Sharing
Binance’s new data sharing policy, implemented in April 2025, has sparked international controversy by slowing down global law enforcement’s efforts to combat crime.
The world’s largest cryptocurrency exchange, Binance, has undergone a radical change in its cooperation model with law enforcement, adopting a more bureaucratic process instead of direct information sharing. This new policy, effective as of April 2025, makes it more difficult for teams investigating crimes such as fraud and money laundering to access user data. Previously working directly with authorities, the exchange now directs the majority of requests through official channels via the United Arab Emirates (UAE).
According to a report by the New York Times, police officials from five different European countries expressed the difficulties they faced in obtaining information from Binance at a conference held in the Netherlands. The exchange is directing all requests—except for emergencies involving child abuse, terrorism, or life-threatening situations—to the UAE government under Mutual Legal Assistance Treaties (MLAT). This situation significantly extends investigation timelines, with Brooklyn Assistant U.S. Attorney Alona Katz highlighting the importance of speed in fighting digital crime, stating, “The outcome of your case depends on how quickly you receive the records.”
The UAE and MLAT Obstacle in Investigations
The U.S. Department of Justice (DOJ) has also warned federal prosecutors that assistance from Binance may decrease. While the exchange’s operations in the UAE are regulated under the Abu Dhabi Global Market, the company defends this change as a “requirement of being a regulated institution.” A company spokesperson stated that cooperation actually increases every year and that these new control mechanisms have been strengthened to ensure compliance with data protection standards.
On the other hand, the exchange had also come to the fore with allegations that it had fired compliance employees investigating Iran-linked transactions in the past. Binance, which categorically denied these claims raised by the Wall Street Journal and Fortune, claims to demonstrate cooperation that goes even beyond traditional financial institutions. However, how the new bureaucratic processes will affect the speed of combating digital crimes remains a question mark in the industry.