Binance Faces Scrutiny As Dubai Demands Crucial Information; BNB Price Drops

Recent reports suggest that Dubai is intensifying its scrutiny of firms that are applying for licenses to operate in the cryptocurrency market, following the collapse of the now-bankrupt FTX. The emirate is now requiring additional information from exchanges, such as Binance, to establish stricter compliance measures that would protect both retail and professional investors.

Dubai Questions Binance

Over the last few weeks, the Virtual Assets Regulatory Authority (VARA) of Dubai has asked Binance to provide further details regarding its ownership structure, governance practices, and auditing procedures. As per a Bloomberg article, VARA is also seeking similar information from all other multinational corporations that are seeking licenses in the city.

The United Arab Emirates, which includes Dubai, has taken action against numerous unlicensed over-the-counter cryptocurrency exchanges. This move is reportedly part of a broader effort to remove the country from the Financial Action Task Force's “grey list” of jurisdictions that do not adequately identify and restrict illicit transactions.

Mounting Pressure On Binance

Binance has responded to recent reports that Dubai's regulatory authority has requested additional information from the company, saying that it has already disclosed all necessary information to the Virtual Assets Regulatory Authority (VARA) in line with its regulatory and fiduciary responsibilities. The company confirmed that it has provided details on the ownership structure of its local entity and its external auditor. However, sources have suggested that Binance's scale and complexity have resulted in a longer response time to queries. Binance operates with a worldwide advisory board and does not have a traditional board of directors or central office.

In March, the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its CEO, Changpeng Zhao, alleging that the company violated derivatives regulations and had “sham” compliance procedures. Binance later stated that it was surprised by the lawsuit and planned to challenge it.

Following the recent news about Binance, the price of the exchange's native cryptocurrency, BNB, dropped by approximately 1% in the past hour. As of now, BNB is trading at $311 with a market cap of $49 billion.

Looking for more information about cryptocurrencies？ WikiBIT offers you a one-stop service! Not only can you access numerous hot news topics, but you can also search for relevant trading firms and obtain their information, such as their ratings, user reviews, and whether they are regulated. Additionally, you can also use WikiBIT to keep up with the latest market trends of various digital currencies.

Don't hesitate any longer - download WikiBIT now and experience its features for yourself!

As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!