Dubai and UAE have officially requested that Binance provide more information on its ownership structure and auditing procedures. Moreover, Bloomberg reports that the request has arrived following stricter crypto scrutiny on entities seeking a crypto license.
Additionally, the report notes that the requests arrive in wake of the massive collapse of FTX that occurred last year. Now, Dubai is seeking to tighten the application process for crypto license seekers, including Binance. Subsequently, requesting information on its various structural facets.
UAE Embraces Stricter Crypto License Standards
The largest crypto exchange on the planet by trading volume has seen some controversy come its way in the last few months. Conversely, as the United States is already engaging in a full crypto crackdown, the international digital asset industry is embracing similar changes in regulatory functions.
Specifically, Dubai and the UAE have requested Binance provide additional information on its ownership structure, governance, and auditing practices. Furthermore, Bloomberg states the request coincides with stricter scrutiny on potential crypto license seekers.
The report officially stated that Dubai Virtual Assets Regulatory Authority officials have made the request to Binance in recent weeks. Additionally, VARA has asked the exchange “to provide more information on its ownership structure, governance, and editing procedures,” according to people connected to the matter.
Bloomberg notes that Binance CEO, Changpeng Zhao, currently lives in Dubai and has “made it the linchpin of expansion in the Middle East,” while facing continued regulatory pressure. Conversely, the emirate is attempting to continue embracing innovation while properly implementing necessary safeguards.