Binance has tightened the conditions under which it provides customer information to overseas law-enforcement agencies, prompting warnings that investigations into cryptocurrency fraud, money laundering and sanctions evasion could face delays lasting several months.The world’s largest cryptocurrency exchange is increasingly requiring investigators to secure court orders or use formal government-to-government legal channels before receiving account records. Police officials say the shift has replaced faster, informal cooperation with processes that often depend on mutual legal assistance treaties, diplomatic communication and judicial approval across multiple jurisdictions.
Those procedures are designed to protect due process and customer privacy. However, investigators argue that their slow pace conflicts with the speed of digital-asset crime, where funds can move through dozens of wallets, exchanges and countries within minutes.
The policy has raised particular concern among agencies handling ransomware, investment scams, narcotics payments and terrorist financing. Access to exchange records can help investigators connect blockchain addresses to verified customers, bank accounts, devices and internet locations. Delayed disclosure can give suspects more time to transfer assets or conceal their identities.
Binance says it remains committed to assisting authorised agencies and maintains a dedicated Government Law Enforcement Request System. Officials must register, verify their identities and provide case information before submitting requests. The company’s guidelines state that requests should identify the legal basis, relevant account details, transaction identifiers and the information being sought.
The exchange says stronger documentation requirements prevent improper access to sensitive user data and ensure that requests comply with the laws governing the relevant Binance entity. It has also rejected suggestions that it is withdrawing cooperation, pointing to tens of thousands of requests processed annually and more than $130 million in illicit funds reportedly helped into confiscation during 2025.
The dispute centres on requests from investigators outside the jurisdiction holding the data. Some police agencies previously obtained information directly by explaining the urgency and providing official credentials. They are now being directed towards domestic prosecutors, courts or central authorities responsible for international legal assistance.
Mutual legal assistance can require investigators to prepare a formal evidence package, obtain approval at home and send it through diplomatic or justice ministry channels. Authorities in the receiving country must then assess whether the request satisfies their own legal standards before compelling a company to disclose records.
Cases involving immediate danger or rapidly moving assets can sometimes receive emergency treatment. Yet investigators say financial crime cases do not always meet emergency thresholds, even when millions of dollars are at risk of disappearing.
The tougher approach comes as Binance continues to operate under intense regulatory scrutiny following its 2023 settlement with United States authorities. The company admitted failures involving anti-money-laundering controls, sanctions compliance and registration requirements, agreeing to penalties worth more than $4.3 billion.
Founder Changpeng Zhao pleaded guilty to failing to maintain an effective anti-money-laundering programme and stepped down as chief executive. He was later sentenced to four months in prison. Richard Teng, a former regulator, succeeded him and promised greater investment in compliance, risk management and engagement with authorities.
Binance was also required to accept independent oversight and expand its suspicious-activity reporting. The settlement gave United States regulators broad access to records and imposed obligations intended to prevent transactions involving sanctioned users and prohibited jurisdictions.
Scrutiny has persisted over claims that accounts linked to intermediaries moving funds towards Iran-connected networks remained active after internal warnings. Binance has denied knowingly allowing sanctioned activity and has challenged reporting that questioned its compliance practices. It maintains that accounts identified as presenting unacceptable risks were removed and relevant information was reported to authorities.
The controversy highlights a wider tension across the cryptocurrency industry. Exchanges hold identity documents, transaction histories and other data that can turn public blockchain movements into usable criminal evidence. At the same time, companies face privacy laws, conflicting national rules and the risk that customer information could be sought without adequate judicial safeguards.
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Cryptocurrency