Binance Faces Scrutiny Over Slower Law Enforcement Data Sharing
Police in five European countries say requests now go through the UAE, which means data on crypto scams and money laundering cases arrives later. Binance says it still responds directly when there is an urgent threat.
Key Takeaways
- Binance is facing criticism after The New York Times reported that it has handled law enforcement requests differently since April 2025.
- Requests are now more often routed through the United Arab Emirates, which means police and prosecutors in several countries wait longer for user data.
- The change adds more pressure on Binance, which has already been under scrutiny over compliance and international data sharing.
Binance is drawing fresh criticism after The New York Times reported that the crypto exchange has been handling law enforcement requests differently since April 2025. The report says the new setup can slow down access to user data for police and prosecutors in several countries, especially in cases where every minute matters for tracking scammers and freezing funds.
Requests Now Go Through the UAE
According to the NYT, police officials from five European countries raised concerns about the process at a conference in the Netherlands. Instead of going straight to Binance, many requests are now routed through the government of the United Arab Emirates, where Binance has regulated operations under Abu Dhabi Global Market. A senior European law enforcement source quoted in the report said that can materially delay response times.
Binance treats cases involving child abuse material, terrorism, or an immediate threat to life differently. In those situations, the exchange still responds directly, the NYT reported. For other requests, foreign authorities are now more likely to depend on Mutual Legal Assistance Treaties, the formal channel for cross-border legal cooperation. That route is legally sound, but it is also widely known for moving much more slowly than direct coordination with a crypto exchange.
Why This Matters for Europe
For European law enforcement, the delay could have real consequences because crypto scams and money laundering cases often unfold quickly. When records arrive later, investigators may lose the chance to follow funds before they are moved again. So the issue is not only about Binance itself, but also about how directly a regulated crypto exchange should work with authorities.
More Pressure on Compliance
The timing is especially sensitive because Binance has already been under a microscope over compliance. Earlier this year, The Wall Street Journal and Fortune reported that the company had fired compliance staff who were investigating transactions that may have been linked to Iran. Binance denied those claims and said the reports were based on false or defamatory allegations.
At the same time, the company is still building out its global compliance operation. Recent context shows Binance now has more than 1,500 compliance employees and handled more than 71,000 law enforcement requests worldwide in 2025, which led to the seizure of more than $131 million (€115 million) in illegal assets. The numbers highlight how much pressure has built around oversight and data sharing, even as regulators and police continue to expect different things depending on the jurisdiction.
