Binance makes fighting crypto crime more difficult, says new report
A new report suggests that Binance has altered its cooperation protocols with international law enforcement, potentially complicating investigations into crypto-related crimes. While Binance denies slowing cooperation, officials claim that routing requests through the UAE has significantly increased response times.
Why it matters
Changes in how major exchanges handle legal requests impact the global ability to combat money laundering and financial fraud in the cryptocurrency sector.
The world's largest cryptocurrency exchange "changed how it cooperates with law enforcement in many countries around the world, frustrating investigators who say the company has made it harder to find scammers and combat money laundering," the NYT said.
The NYT cited discussions that took place during a June law enforcement conference held in the Netherlands, where police officials from five European countries described difficulties obtaining information from Binance. The exchange still responded directly in cases involving child sexual abuse material, terrorism or an imminent threat to life, according to the report.
Most other requests were being directed through the government of the United Arab Emirates, where Binance has regulated operations, substantially increasing response times, the NYTreported, citing a senior European law enforcement official. Binance’s regulated UAE entities operate under Abu Dhabi Global Market.
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