#Dubai Asks Binance, Other Crypto License Applicants for More Information - Bloomberg

Dubai Asks Binance, Other Crypto License Applicants for More Information - Bloomberg

Dubai is tightening scrutiny of crypto license seekers in the wake of last year’s bankruptcy of digital-asset exchange FTX, requesting additional information from applicants like Binance, people familiar with the matter said.

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, said the people, who requested anonymity to discuss private deliberations. VARA is requesting similar information from all international companies seeking permits, three of the people said.
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Dubai’s stricter approach is a potential headache for Binance Chief Executive Officer Changpeng “CZ” Zhao, who lives there and has made it the linchpin of expansion in the Middle East, as he faces increasing pressure from US regulators. The emirate is trying to balance fostering innovation with the need to have proper oversight of an industry that’s been mired in high-profile scandals in the past year, the people said.

“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,” said Sam Blatteis, CEO of The MENA Catalysts, which provides government-relations advice to fintech multinationals expanding in the Persian Gulf.