Dubai’s Virtual Asset Regulatory Authority (VARA) has tightened its crypto tightening by requesting that crypto firms applying for licenses in the country provide additional information, according to a report from Bloomberg.
The people familiar with the matter cited the FTX capitulation as a crucial cause of the new development, noting that Dubai’s regulatory body has grown cautious since the incident last year.
VARA has requested that Binance provide additional information about its ownership structure, governance, and auditing procedures. Sources claimed the request was not for Binance alone but for other exchanges seeking international permission to operate in the country.
UEA Looks to Further Tighten Regulations
VARA officials stated that even though the United Arab Emirates is gearing towards accepting innovations and adopting technologies, it will still exercise due diligence to prevent a repeat of Sam Bankman-Fried’s FTX mismanagement.
“VARA 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, Sam Blatteis, CEO of MENA Catalyst, said.
Reports from the virtual assets service providers show that only five exchanges have basic licenses to operate in the country. Binance, Komainu, Crypto.com, GC Exchange, and Hex funds only have Preparatory Minimum Viable Product permits, meaning they cannot offer Dubai’s locally regulated digital assets services.
More Headaches for Crypto Firms
With Dubai joining the queue, the number of countries cracking down on crypto exchanges keeps increasing daily. Japanese regulators last week flagged top exchanges as illegally operating in the country while noting it plans to introduce new crypto laws.
Binance, which has already responded to queries from US senators and the Commodity Futures Trading Commission (CTFC) will be faced with the herculean task of providing information about its large and complex organizational structure to the VARA.
