The cryptocurrency exchange updated its compliance rules in May, requiring international law enforcement agencies to obtain government-issued letters of request (LOR) before accessing user information. This change is hindering efforts from overseas agencies that rely on the existing mutual legal assistance treaty (MLAT) system, which Binance no longer recognizes. The New York Times reported that this quiet policy adjustment has created a bureaucratic obstacle for authorities seeking to investigate crypto-related crimes.
This article is Bitcoincryptos' summary and analysis of reporting originally published by CoinDesk. Read the full original report at the link above.
The updated compliance rules have sparked concerns among international law enforcement officials who had previously relied on Binance's cooperation in obtaining user data. This shift may hinder efforts to combat global cryptocurrency-related crimes, such as money laundering and terrorist financing.
