As per the most recent updates, the Virtual Assets Regulatory Authority (VARA) in Dubai has issued a directive to Binance, the top-tier cryptocurrency exchange that was granted the MVP license by the authority in September 2022. The directive requires Binance to furnish additional information about the company’s “ownership structure, governance, and auditing procedures.” This move by VARA underscores the importance of transparency and accountability in the virtual assets industry and highlights the regulatory body’s commitment to ensuring a secure and trustworthy ecosystem for all stakeholders.
The report highlights Dubai’s proactive approach to tackling the complexities of the crypto landscape by implementing rigorous regulations. As part of this effort, the authorities have requested that crypto exchanges furnish details on their business needs. This move underscores Dubai’s commitment to ensuring a secure and transparent environment for all stakeholders in the crypto industry.
The report highlights the discerning approach of the UAE city towards crypto companies seeking licenses, as noted by three anonymous sources. The VARA’s latest initiative aims to meticulously examine crypto exchanges, ensuring they adhere to the most stringent regulatory benchmarks.
Bloomberg recently reported on Twitter that Dubai, where Binance founder Changpeng “CZ” Zhao resides, is intensifying its scrutiny of applicants seeking licenses for cryptocurrency operations.
In response to the inquiry, Binance representatives have affirmed their proactive approach in providing VARA with all pertinent information by their regulatory and fiduciary obligations.
Despite Binance’s growth and success, the company faces regulatory challenges limiting its operations. Not only has Dubai imposed restrictions, but the United States has also exerted pressure on the crypto firm. In fact, on March 28, the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance, accusing the company of operating without proper registration. These regulatory hurdles remind the importance of compliance and adherence to legal requirements in the crypto industry.
According to reliable sources, the VARA has been diligently examining and has made a formal request for all international crypto exchanges seeking licenses to provide essential information. This proactive measure aims to minimize potential crypto losses after the financial crisis.
