Binance is frustrating U.S. and European investigators with a new policy that routes foreign law enforcement requests through the UAE, significantly slowing response times. While Binance defends the change as a necessary safeguard for a regulated entity, prosecutors say it hinders their ability to track scammers and freeze assets. The policy, enacted in April 2025, comes amid ongoing scrutiny of the crypto exchange's compliance operations.
UAE routing policy
- ▪Binance still responds directly to requests in cases involving child sexual abuse, terrorism, or an imminent threat to life
- ▪In April 2025, Binance adopted a policy that routes most foreign law enforcement requests through the United Arab Emirates
- ▪Binance's regulated entities in the UAE operate under the Abu Dhabi Global Market
- ▪The policy change is a departure from Binance's previous approach of working directly with authorities to freeze accounts and provide user information
Law enforcement frustrations
- ▪A U.S. Justice Department memo warned federal prosecutors to expect less assistance from Binance when seeking to freeze or seize assets
- ▪European investigators and U.S. prosecutors state Binance's new policy makes it harder to track scammers and combat money laundering
- ▪Alona Katz, an assistant district attorney in Brooklyn, stated that the speed of receiving records determines the outcome of a case
- ▪At a June 2026 law enforcement conference in the Netherlands, police officials from five European countries reported difficulties obtaining information from Binance
MLAT process delays
- ▪Investigators say speed is critical in crypto cases because illicit funds can be moved and mixed within seconds
- ▪Under the new policy, foreign law enforcement agencies must route certain requests through Mutual Legal Assistance Treaties (MLATs)
- ▪The MLAT process for governments to exchange criminal investigation evidence can take considerably longer than direct cooperation with an exchange
Binance cooperation claims
- ▪Binance described its new procedures as a "deliberate strengthening" of controls consistent with the standards of a regulated institution
- ▪Binance denied that its cooperation with U.S. authorities had changed in response to reports about the DOJ memo
- ▪A Binance spokesperson stated the company has not slowed its cooperation with law enforcement and has increased it year over year
Compliance operations scrutiny
- ▪In November 2023, Binance agreed to a $4.3 billion penalty to resolve U.S. Department of Justice money laundering and sanctions charges
- ▪The Wall Street Journal and Fortune reported that Binance had dismissed compliance employees who investigated transactions allegedly connected to Iran
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