• Dubai’s Virtual Regulatory Authority (VARA) has requested more information from Binance regarding the firm’s ownership structure, governance, and auditing procedures.
• The request came after the collapse of FTX, prompting Dubai’s regulators to seek further details from crypto firms applying for operating licenses.
• Binance holds a minimal viable product (MVP) license and is looking to gain a full market product (FMP) license.
Dubai’s Virtual Regulatory Authority Requests More Information From Binance
Dubai’s Virtual Regulatory Authority (VARA) has requested additional information from crypto exchange Binance regarding the firm’s ownership structure, governance and auditing procedures. This follows the recent collapse of FTX, which prompted Dubai’s regulators to require more information from crypto firms that are applying for operating licenses.
Binance’s MVP License
Binance currently holds a minimal viable product (MVP) license and is aiming to obtain a full market product (FMP) license. According to VARA officials, only holders of an FMP license can offer a complete range of services to Dubai residents. Along with Binance, several other exchanges have been granted MVP licenses which allow them to provide approved digital asset-related services “to suitably qualified retail and institutional investors in Dubai“.
Increased Presence in Middle East
Binance has increased its presence in the Middle East; CEO Changpeng Zhao has established Dubai as his base. As VARA increases its scrutiny on Binance, it faces heightened regulatory scrutiny from the US as well; recently it was sued by Commodity Futures Trading Commission for allegedly violating derivative regulations and maintaining “sham“ compliance procedures.
Binance Responds To Request
In response to the request for more information about its ownership structure, governance, and auditing procedures, Binance stated: „We have disclosed all necessary answers to VARA on a proactive basis and in line with our regulatory and fiduciary responsibilities.“
This article is provided for informational purposes only. It is not offered or intended to be used as legal advice, tax advice, investment advice or financial advice.