According to a report by Bloomberg on April 5, the Virtual Assets Regulatory Authority (VARA), the entity that supervises crypto activities in Dubai, has requested Binance to provide more information about its business requirements to strengthen regulatory oversight in the emirate.
Citing three anonymous sources, the report revealed that VARA had asked Binance to submit more details about its ownership structure, governance, and auditing procedures. The regulator has also requested the same information from other global crypto players seeking licensing in Dubai.
Additionally, VARA officials have asked Binance to provide similar information about board procedures at its global group level. However, given the exchange’s size and complexity, addressing the queries is taking longer, according to two sources.
This increased scrutiny on virtual asset service providers (VASPs) in Dubai adds to Binance’s challenges, as the exchange is already facing more pressure from regulators in the United States. Last week, the United States Commodity Futures Trading Commission filed a lawsuit against Binance and its CEO, Changpeng Zhao, accusing the exchange of improper compliance procedures and trading.
Zhao has denied the allegations, calling them “an incomplete recitation of facts” and stating that Binance “does not trade for profit or ‘manipulate’ the market.”
