Binance has quietly revised its cooperation policies for data requests, channeling most cross-border inquiries through formal government-to-government processes, The New York Times reported. The shift means international law enforcement authorities may need to rely on slower mutual legal assistance treaties (MLATs) to obtain user information from the world’s largest cryptocurrency exchange.
Policy shift routes data requests through treaty channels
According to the report, Binance modified its compliance rules in a way that limits direct responses to overseas law enforcement inquiries. Instead, requests for user data from outside a jurisdiction are now being steered to established intergovernmental pathways such as MLATs. These mechanisms, while standard in cross-border investigations, often take months to complete, potentially delaying probes into suspected criminal activity involving digital assets.
Impact on investigations and oversight
Routing requests through treaty frameworks can increase procedural rigor and ensure jurisdictional alignment, but it also adds time and administrative complexity. Investigators pursuing cases that rely on timely access to exchange records—such as fraud, money laundering, or sanctions evasion—could face longer timelines as requests move through diplomatic and legal channels.
Context: Binance’s evolving compliance posture
The reported change comes amid sustained regulatory scrutiny of global crypto platforms. Binance has overhauled parts of its compliance infrastructure over the past two years while operating across multiple jurisdictions with differing data privacy and law enforcement standards. The company agreed to a multibillion-dollar settlement with U.S. authorities in late 2023 and has since stated that it is strengthening its governance and compliance systems under new leadership.
Why it matters
- For law enforcement: More reliance on MLAT processes could slow the pace of investigations that depend on rapid data access.
- For users: The policy underscores growing formalization of cross-border data-sharing in crypto, aligning exchange practices more closely with traditional financial sector norms.
- For markets: Changes in compliance workflows at major exchanges can influence the speed and effectiveness of regulatory oversight globally.