Binance Under Scrutiny as Dubai Cracks Down on Crypto Entities – Regulation Update


Dubai’s Virtual Assets Regulatory Authority (VARA) has reportedly requested additional information from Binance concerning the crypto exchange’s ownership structure and auditing procedures. The move comes as the emirate seeks to promote innovation while protecting users’ funds.

Binance in the Spotlight

A Bloomberg report dated April 5 said that the collapse of the crypto exchange FTX has prompted Dubai regulators to ask for more information from crypto license applicants including Binance, which already holds the minimal viable product license.

According to the report, officials from VARA have contacted Binance to provide details about its ownership structure, board procedures, and auditing protocols. As previously reported by News, no crypto firm including Binance has been granted a full market product (FMP) license yet. The minimal viable product (MVP) license allows holders to offer a limited range of services to qualified investors in Dubai.

Sam Blatteis, CEO of The MENA Catalysts, was quoted in the report as saying that Dubai authorities have adopted a stricter stance to strike a balance between fostering innovation and protecting users’ funds. He also suggested that the emirate is keen to maintain good relations with Western regulators who have adopted a more muscular crypto regulations stance.

“VARA wants to turn Dubai into a capital for the digital-assets economy while safeguarding its business ties with Western jurisdictions like Europe that are adopting more muscular crypto regulations,” Blatteis reportedly said.

Questions Surround Binance

The Bloomberg report also suggested that VARA’s stricter approach could spell trouble for Binance CEO Changpeng Zhao (CZ) who already faces legal problems in the U.S. As reported by News, Zhao is being sued by the Commodity Futures Trading Commission (CFTC) which accuses him and his firm of violating derivatives regulations.

The allegations and accusations against the crypto exchange have prompted regulators like VARA to ask for more information about Binance’s ownership structure and board procedures. Other crypto exchange platforms operating in the United Arab Emirates (UAE) have also been asked to furnish VARA with more information about their activities.

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Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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