Dubai’s Virtual Assets Regulatory Authority (VARA) asked Binance to disclose details about its board procedures as the regulators tighten the application process for the operational license.
According to a Bloomberg report, the regulators’ request involves disclosures of Binance’s governance process, ownership structure, and auditing procedures. The unnamed sources claimed that officials at VARA have issued similar requests to other crypto platforms that seek licenses to operate in the nation.
The sources said Binance is taking a long time to process the request due to the firm's size and complexity. Binance’s APAC head earlier acknowledged that a full audit of the exchange’s reserves is still “some way off.”
The report added that Binance plans to launch another platform titled ”Binance FZE'' to provide crypto trading services to UAE-based users. However, Binance said the launch of its new entity has been delayed on account of “operational reasons.”
Binance had secured a provisional license from VARA in 2022. The exchange is currently engaged in securing an operational MVP license that will allow it to serve institutional investors.
The delay in the launch of Binance FZE can be attributed to the fact that the firm does not possess a Full Market Product license, which allows firms to cater to retail clients. VARA will start issuing the FMP permits after the end of June.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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