report<\/u><\/a>.<\/p>\n\n\n\nAs part of this tightened scrutiny, the Virtual Assets Regulatory Authority (Vara) of Dubai has requested additional information from license applicants such as Binance, regarding their ownership structure, governance, and auditing procedures.<\/p>\n\n\n\n
This increased level of scrutiny applies to all international companies seeking permits. This new approach may pose a challenge for Binance CEO Changpeng “CZ” Zhao, who resides in Dubai and has made the city the cornerstone of the company’s expansion in the Middle East, as he is already facing mounting pressure from US regulators.<\/p>\n\n\n\n
The emirate is trying to balance fostering innovation with the need to have proper oversight of an industry that\u2019s been mired in high-profile scandals in the past year.<\/p>\n\n\n\n
\u201cVara 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,\u201d said Sam Blatteis, CEO of The Mena Catalysts, which provides government-relations advice to fintech multinationals expanding in the Persian Gulf.<\/p>\n\n\n\n
In late March, the US Commodity Futures Trading Commission (CFTC) sued Binance and Zhao for allegedly violating derivatives regulations and accused the firm of having \u201csham\u201d compliance procedures. Binance has called the lawsuit \u201cunexpected and disappointing.\u201d<\/p>\n\n\n\n
\u201cWe have disclosed all necessary answers to Vara on a proactive basis and in line with our regulatory and fiduciary responsibilities,\u201d Binance said in an emailed answer to questions from Bloomberg News.<\/p>\n\n\n\n
The company also said it has provided information on its local entity\u2019s ownership structure and external auditor.<\/p>\n\n\n\n
The United Arab Emirates (UAE), of which Dubai is a part, has cracked down on dozens of over-the-counter crypto exchanges that set up there without licences.<\/p>\n\n\n\n
Those efforts are part of a broader push to get the UAE off the Financial Action Task Force\u2019s \u201cgray list\u201d of jurisdictions that don\u2019t do enough to uncover illicit funds.<\/p>\n\n\n\n
The UAE\u2019s foreign ministry didn\u2019t immediately respond to messages seeking comment.<\/p>\n\n\n\n
The regulator\u2019s public virtual-asset service provider register shows four companies in addition to Binance that hold licences: Komainu, Hex Trust, GC Exchange and Crypto.com.<\/p>\n\n\n\n
About the author<\/strong><\/strong><\/p>\n\n\n\nAnjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.<\/p>\n","protected":false},"excerpt":{"rendered":"
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