- Dubai’s VARA has requested Binance to submit the details regarding its business requirements.
- The city’s move is to approach crypto innovation with stringent regulations.
- The regulation poses stress on Binance as the company has been facing regulations from the US also.
According to the latest reports, the Virtual Assets Regulatory Authority (VARA) in Dubai has ordered the leading crypto exchange Binance which received the authority’s MVP license in September 2022, to submit more details regarding the company’s “ownership structure, governance, and auditing procedures”.
Significantly, the report stated that Dubai, in an attempt to confront the crypto challenges with stringent rules, asked the crypto exchange to provide information on the company’s business requirements.
Notably, the three anonymous sources cited by the report commented that the UAE city pays keen attention to the crypto companies applying for licenses. The VARA’s move intends to scrutinize the crypto exchanges to ensure firms comply with the “highest” regulatory standards.
Recently, the media Bloomberg shared a Twitter post commenting that “Dubai, the adopted home of Binance founder Changpeng “CZ” Zhao, is boosting scrutiny of crypto license applicants”:
As a reaction, the Binance officials stated that they have “disclosed all necessary answers to VARA on a proactive basis and in with our [their] regulatory and fiduciary responsibilities”.
Nonetheless, the advancing regulations pose restrictions over Binance as in addition to Dubai, the United States has also inflicted pressure on the company. On March 28, the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against the crypto firm alleging that it has been functioning without proper registration.
Further, the sources of information stated that the VARA has been scrutinizing and has requested to submit the necessary details to all the international crypto exchanges that seek licenses, as a part of mitigating the crypto losses after the financial crux.
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