Dubai asks Binance for more details regarding its cryptocurrency license.

Dubai asks Binance for more details regarding its cryptocurrency license.

The crypto industry has been severely impacted by the FTX collapse’s aftermath. However, Binance is currently at the top of the list in terms of regulators’ intense scrutiny. The Dubai regulators, who are requesting more information about its crypto license in the city, are the newest to join the group.

According to a Bloomberg report, “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 to the claims by saying “We have disclosed all necessary answers to VARA on a proactive basis and in line with our regulatory and fiduciary responsibilities.” 

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Three unnamed sources who spoke to Bloomberg said that Dubai’s regulatory body, the Virtual Assets Regulatory Authority, is asking all foreign businesses that want licenses for the same information.(VARA).

In VARA’s public virtual-asset service provider register, there are also entries for Komainu, Hex Trust, GC Exchange, and Crypto.com as authorized providers.

Hex Trust said that VARA had asked for more information about who owns the company, how audits are done, and how the board works.

Binance got a foothold in the Middle East last March when Dubai gave them a VA license that let them offer limited exchange products and services to pre-qualified investors and licensed financial service providers.

Binance is currently looking to upgrade to an operational MVP license in Dubai and then to a full market product license in order to serve institutions and qualified investors.

Binance is having a hard time right now because “FUD” is spreading rumors and regulators all over the world are paying closer attention.The CFTC only recently sued Binance and its CEO, CZ, for breaking US regulatory laws. The CFTC claims that Binance allowed American users to trade cryptocurrency derivatives without first applying to become a U.S. futures exchange.

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