Strengthening supervision of cryptocurrency companies
Dubai’s Crypto Assets Regulatory Authority (VARA) intends to step up its oversight of companies such as Binance as it seeks to obtain a business license, it has learned. Bloomberg reported on May 5, citing multiple sources.
It is said that the bankruptcy of FTX last year is behind the strengthening of supervision. Bloomberg also noted that Binance CEO Changpong Zhao (CZ) is under pressure from U.S. regulators, and the United Arab Emirates, to which Dubai belongs, is trying to strike a balance between promoting innovation and proper oversight. They say they are trying to keep it.
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Specifically, VARA asked Binance to provide more information regarding its ownership structure, governance and audits. It also asked companies other than Binance to submit similar information.
Bloomberg sources predict that Binance’s global operations will take time to comply with VARA’s request given the size and complexity of the company. Meanwhile, a Binance representative told Bloomberg that “as a pre-procedure, we have provided VARA with all necessary responses.”
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Binance Application Status
The Dubai government announced the creation of VARA in March last year. Since then, Binance has actually applied for a license. At the time, CZ commented on the launch of VARA: “Clear regulation is crucial. Dubai’s new cryptocurrency regulation law is a leap forward.”
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Binance obtained the first-stage license in March last year. Then in September, it announced that it had increased its license level to allow it to offer cryptocurrency services to qualified investors in Dubai.
The company is currently working on renewing its license so that it can offer cryptocurrency trading services to all investors.
What is Binance
Operates a major virtual currency exchange with a large number of traded stocks, trading volume, and registered users. In addition, we are developing a wide range of businesses such as the activities of the venture capital department, the provision of educational content, and philanthropic activities. In November 2010, the company announced its entry into the Japanese market.
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