VARA Requires Binance to Provide Additional Information

Dubai’s Virtual Regulatory Authority (VARA) has requested that crypto exchange Binance provide additional information regarding the firm’s ownership structure and auditing procedures.

Bloomberg reports that the collapse of FTX has prompted Dubai’s regulators to require more information from crypto firms applying for operating licenses. According to reports, officials from Dubai’s VARA recently requested that Binance share more details concerning its ownership structure, governance, and auditing procedures.

Officials at Dubai’s Virtual Assets Regulatory Authority have, in recent weeks, asked Binance to provide more information on its ownership structure, governance, and auditing procedures.

Binance responded by saying:

We have disclosed all necessary answers to VARA on a proactive basis and in line with our regulatory and fiduciary responsibilities.

The crypto exchange currency holds the minimal viable product (MVP) license and is looking to gain a full market product (FMP) license. No crypto firms, including Binance, have been granted such a license. The regulatory authority said that only holders of the FMP license could offer a full range of services to Dubai residents.

Binance and a couple of other exchanges have been awarded an MVP license which allows holders to offer their services of an approved range of digital asset-related services “to suitably qualified retail and institutional investors in Dubai.”  

Binance Under Increased Scrutiny

Binance has increased its presence in the Middle East, and Binance CEO, Changpeng Zhao, has established Dubai as his base. As the VARA increases its scrutiny of Binance, it faces increased regulatory scrutiny from the US. Binance was recently sued by the US Commodity Futures Trading Commission (CFTC) for allegedly violating derivative regulations and maintaining “sham” compliance procedures.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.