- It’s possible that Dubai’s application process for crypto licenses may become more severe.
- The Dubai Virtual Assets Regulatory Authority reportedly issued the request to Binance.
Dubai and the UAE have officially requested further information from Binance on the company’s auditing procedures and ownership structure. More crypto regulation has prompted the request, Bloomberg reports, from firms looking to get a crypto license.
As per sources, the requests are due to the massive FTX collapse that occurred in 2022 and the ongoing crackdown by U.S. authorities on the crypto sector. It’s possible that Dubai’s application process for crypto licenses, including Binance’s, may become more severe in the near future. Also, detailed architectural inquiries were made.
Increased Regulations Amid Recent Developments
The largest crypto exchange in the world has been the center of much controversy in recent months. Although the United States goes all in on a crypto crackdown, the rest of the world’s digital asset industry welcomes shifts in regulatory responsibilities.
The Dubai Virtual Assets Regulatory Authority reportedly issued the request to Binance. Those in the know claim that VARA has also asked the exchange for further details about its ownership, governance, and editing procedures.
Binance CEO Changpeng Zhao has reportedly made it the center of growth in the Middle East despite rising pressure from authorities. Yet, the emirate is making an effort to keep its doors open to innovation while firmly implementing the necessary safeguards.
Moreover, Binance, the biggest cryptocurrency exchange in the world, and its CEO Changpeng Zhao are being sued by the United States Commodity Markets and Futures Trading Commission (CFTC). The CFTC claims in its complaint that Binance has been serving consumers in the United States without being registered to do so since at least 2019.
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