Binance has quietly changed its compliance rules, forcing international law enforcement agencies to rely on slow-moving government treaties to obtain user data. The shift makes it harder for police to fight crypto crime, as direct requests are no longer accepted.
What changed at Binance
The exchange altered its compliance procedures, ending a practice where law enforcement could request user data directly. Now, agencies must go through formal government-to-government treaties — a process that can take months. The change was made without a public announcement, catching many investigators off guard.
This slows down investigations into scams, hacks, and ransomware. When police need transaction records or account details quickly, waiting for a treaty request can let criminals move funds or disappear. The timing isn't great: crypto-related crime has been rising this year, and law enforcement already struggles to keep pace.
The broader compliance picture
Binance has faced regulatory scrutiny across multiple jurisdictions. This move could be seen as a retreat from cooperation, but the company hasn't publicly explained the change. Some observers note that the shift might reduce Binance's legal exposure in certain countries, but it also risks alienating the very agencies that help police the ecosystem.
What happens next
It's unclear whether other major exchanges will follow Binance's lead. Law enforcement groups are likely to push for faster treaty processes or new bilateral agreements. For now, investigators are stuck with a slower tool — and criminals may be the ones who benefit.
