Dubai Crypto Regulator VARA Request Business Info From Binance

Dubai cryptocurrency regulator Virtual Assets Regulatory Authority (VARA) has requested certain additional information from global exchanges operating in the region including Binance.

The VARA has asked that the leading digital asset service provider submit documents showing its ownership, governance, auditing procedures, and other business requirements as it works on tightening crypto regulations in the UAE region.

The additional information applies to all crypto trading companies requesting licenses in the city. Until all the requested documents are submitted, these exchanges will not be given or allowed to upgrade to an operational MVP license ich precedes a full market product permit. At th same time, Dubai is trying to rid itself of any firm involved in illicit transactions in compliance with the Financial Action Task Force.

Sam Blatteis, Chief Executive Officer (CEO) of The MENA Catalysts said “VARA wants to turn Dubai into a capital for the digital-assets economy while safeguarding its business ties with Western jurisdictions like Europe that are adopting more muscular crypto regulations.”

In response to the VARA request, Binance claimed that they “have disclosed all necessary answers to VARA on a proactive basis and in line with our regulatory and fiduciary responsibilities.”

Binance Comes Under Global Regulatory Pressures

This request comes almost seven months after the world’s leading crypto exchange received a Minimal Viable Product (MVP) license from VARA. Previously, Binance was granted provisional approval after several requests from the Dubai World Trade Centre. It permitted Binance to offer its services within “its internationally benchmarked legislative framework for virtual asset service providers (VASPs).”

With the current pressure and lawsuits from United States regulators, this VARA’s request may be an additional problem for Changpeng Zhao, Binance’s CEO. In the last week of March, CZ together with his company and one other executive Samuel Lim was summoned by the Commodity Futures Trading Commission (CFTC). 

Markedly, the complaint was filed against the Binance CEO for attempting to avoid regulation by keeping away information about its executive offices. Also, the digital assets service provider allegedly offers unregistered commodity trading which the regulator tagged as a violation of U.S. laws. Earlier in the same month, a staff of the Securities and Exchange Commission (SEC) accused Binance of selling unregistered securities.