Police officials from five European nations voiced a shared grievance while attending a law enforcement conference in the Netherlands in June 2026: they are now struggling to obtain user data from Binance.
The roadblock stems from an internal policy shift. A recent New York Times report reveals that the world’s largest crypto exchange implemented new rules in April 2025, overhauling how the company handles identity data requests from global law enforcement authorities.
In the past, Binance’s security team worked directly with local police agencies to freeze crypto wallets suspected of holding illicit proceeds. Now, that direct shortcut has been closed.
A Bureaucratic Route Through the Middle East
International law enforcement agencies are now required to route all data requests through diplomatic channels via the United Arab Emirates (UAE) government. Binance mandates this procedure because its primary entity operates under the licensing and regulatory framework of the Abu Dhabi Global Market.
This procedural shift forces international police forces to rely on Mutual Legal Assistance Treaties (MLAT). These cross-border legal treaty processes take significantly longer than direct security coordination. Emergency channels and instant access to customer data are now reserved for only a handful of exceptional cases, such as child sexual abuse material investigations, terrorist networks, or imminent threats to life.
For criminal investigators, speed in accessing digital data is critical. Waiting through transcontinental bureaucratic processes can give criminals enough time to move their assets. “How quickly you get records determines the outcome of your case,” said Alona Katz, an assistant district attorney in Brooklyn.
Signs of this slowed access had already surfaced earlier. A report by The Information previously revealed a leaked internal U.S. Department of Justice (DOJ) memo. The document warned federal prosecutors to prepare for a reality where Binance provides less assistance.
Denials and Past Controversies
Binance strongly rejected allegations that it is deliberately hindering or obstructing law enforcement investigations. A company spokesperson pushed back against the claim, noting that its law enforcement cooperation metrics have continued to rise year-over-year.
Nevertheless, Binance’s track record with law enforcement has faced other controversies. In early 2026, The Wall Street Journal and Fortune reported that exchange management fired compliance personnel who attempted to investigate transaction flows linked to Iranian entities. As with the data access concerns, Binance denied those reports.
Consolidating operational control under UAE law provides Binance with a solid licensing foundation. On the ground, however, the new policy erects a layered bureaucratic wall separating critical data from police investigations across other continents.
Source: CoinDesk.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
