People familiar with the matter claim that VARA asked other global crypto firms to provide similar information.
In an effort to bolster regulatory measures within the cryptocurrency sector, Dubai's Virtual Assets Regulatory Authority (VARA) is reportedly seeking more information from crypto exchange Binance about its business operations.
According to a Bloomberg report shared on April 5th, three anonymous sources revealed that VARA requested Binance to provide further details on its ownership structure, governance, and auditing processes.
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On top of that, the sources indicated that similar information had been sought from other global crypto companies seeking to receive licenses in Dubai.
In a more detailed inquiry, the regulatory authority has also asked Binance to supply information on board procedures at the global group level. Taking into account the crypto exchange's vast size and intricate structure, two sources stated that addressing these questions has proven to be time-consuming.
As Dubai increases its scrutiny of virtual asset service providers (VASPs), Binance is simultaneously grappling with heightened pressure from regulators in the United States.
The United States Commodity Futures Trading Commission (CFTC) recently filed a lawsuit against Binance and its CEO, Changpeng Zhao, accusing the firm of several trading violations.
In response, Zhao has dismissed these allegations as "an incomplete recitation of facts," stating that Binance "does not trade for profit or manipulate the market."
It is worth noting that Binance received an MVP preparatory license from VARA in September 2022. The approval allows the crypto exchange to offer its services to pre-qualified investors and set up its office in the United Arab Emirates.
In conclusion, intensified examination of Binance by Dubai's regulatory authority reflects the growing emphasis on ensuring transparency and compliance within the cryptocurrency industry.
