The aftermath of the FTX collapse has hit the crypto sector hard. However, Binance is now at the top of the list in terms of intense scrutiny from regulators. The latest to join the part is the Dubai regulators who are seeking more details regarding its crypto license in the city.
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.”
The three anonymous sources of Bloomberg claim that all international firms applying for licenses are being asked for similar information by Dubai’s regulatory body, the Virtual Assets Regulatory Authority (VARA).
In addition to Binance, four other companies are listed as licensed providers in VARA’s public virtual-asset service provider register which are Komainu, Hex Trust, GC Exchange, and Crypto.com.
Hex Trust acknowledged receiving inquiries from VARA for more details regarding ownership, auditing, and board procedures.
Last March, Binance secured a foothold in Mid-East with a VA license From Dubai enabling them to extend limited exchange products and services to pre-qualified investors and professional financial service providers.
In order to serve institutions and qualified investors, Binance is currently seeking to upgrade to an Operational MVP license in Dubai, and subsequently to a Full Market Product license.
Now Binance is struggling among “FUD” spreading rumors and increased scrutiny from regulators all around the world. Just last month, Binance and its CEO CZ were sued by CFTC for US regulatory violations. According to the CFTC, Binance permitted U.S. users to trade crypto derivatives without registering as a U.S. futures exchange.