Binance launches assistance system for government agencies

What’s new? Cryptocurrency exchange Binance has launched a system to assist government regulators and law enforcement agencies called the Law Enforcement Request System (LERS). Government representatives will be able to send requests to the platform to provide information about users needed as part of investigations. Each request will be reviewed on a case-by-case basis, taking into account terms of use and applicable laws.

Announcement of the LERS system

What else is known about the system? In order to access LERS, one must be a law enforcement agent or government official whose authority includes collecting evidence in connection with investigations. It is noted that the information can only be accessed as part of professional activity, and an unauthorized request could entail prosecution.

To submit a request, government officials need to confirm their identity by uploading copies of official documents to the system. In order to expedite the processing of requests, Binance recommended providing data on the progress of the investigation. It is noted that the exchange will notify users about requests made against them unless a court or police order states otherwise.

What data does Binance collect? Representatives of the exchange stressed that the collection, storage, and use of customer data are governed by the platform’s terms of use and privacy policy, which are “amended from time to time.” This includes information users provided when registering, data needed to provide services, and compliance with regulatory requirements such as know your customer and anti-money laundering (KYC/AML). Binance added:

“In order for Binance to provide information relating to our users in aid of an ongoing criminal investigation, we will require a valid court order from a competent jurisdiction or police orders/warrants. Please note that in certain cases, we may require more information to ensure that the release of information is lawful.”

In June, The Intercept’s reporters reported that crypto exchange Coinbase provided the US authorities with software to track transactions and historical geolocation data of shipments. It is noted that between the parties there is no license agreement that imposes restrictions on the use of the tool. Later, Coinbase representatives stated that the information transmitted came only from publicly available sources, and not from the exchange’s user base.