Binance policy shift slows police crypto investigations

In April 2025 Binance, the world’s largest cryptocurrency exchange, quietly changed its law‑enforcement cooperation policy. The new rule requires police requests for user data to be routed through foreign government agencies under mutual‑legal‑assistance treaties, a process described as slow and treaty‑governed.

European officers from five countries say they now obtain information only in cases involving terrorism, child sexual‑abuse material or imminent threats to life, while U.S. investigators have seen at least two investigations delayed. Assistant District Attorney Alona Katz warned that “how fast you get your records determines the outcome of your case.”

The policy change coincided with the departure of several senior compliance staff who had flagged $1.7 billion in flows to Iranian entities. Binance chief compliance officer Noah Perlman told the New York Times the firm is “far beyond” its legal obligations and is merely navigating complex crypto and data‑protection rules, denying that cooperation has slowed.