Binance Cooperation Policy Frustrates Police, Slows Investigations

Binance, the world's largest cryptocurrency exchange, has implemented a new law enforcement cooperation policy that is frustrating police and hindering investigations. The policy requires law enforcement to send certain requests to foreign government agencies, which can be a time-consuming process governed by international treaties.

This change, made in April 2025, has slowed some investigations in Europe and caused concerns in the U.S., according to the New York Times. Investigators said the new policy has made it harder to combat financial crime, citing the example of police officers from five European countries who struggled to get information from Binance outside of cases involving terrorism, child sexual abuse materials or immediate threats to life.

Alona Katz, an assistant district attorney in Brooklyn, told the Times that while Binance was typically able to turn over information within hours, she was unable to get account records for some users based in the United Arab Emirates. Speed is critical in crypto cases, with criminals moving funds from account to account in a matter of seconds.

The company has disputed allegations that it fired or suspended several high-level compliance employees who raised concerns about $1.7 billion flowing from Binance accounts to Iranian entities. The departure of these employees and the new policy have raised questions about Binance's commitment to cooperating with law enforcement.