Dubai is going to tighten its cryptocurrency rules after increasing American pressure and recent events in the industry.
Dubai’s tightening of crypto rules could cause problems for Binance. Dubai had more relaxed rules than the rest of the world.
Dubai’s Strict Crypto Approach Could Hurt Binance
Dubai is tightening its scrutiny of crypto license seekers after the bankruptcy of digital asset exchange FTX last year. It requests additional information from applicants like Binance, according to people familiar with the matter.
Officials at Dubai’s Virtual Assets Regulatory Authority (VARA) have asked Binance in recent weeks to provide more information on its ownership structure, governance and audit procedures. Three people said that VARA has requested similar information from all international companies seeking permission.
Dubai’s stricter approach is a potential headache for Binance chief executive Changpeng Zhao, who lives there and has made it a cornerstone of expansion in the Middle East while facing increasing pressure from US regulators.
Sam Blatteis, CEO of MENA Catalysts, which provides government relations advice, said in a statement on the subject:
“VARA seeks to transform Dubai into a capital for the digital asset economy while maintaining commercial ties with Western jurisdictions such as Europe that have adopted stronger crypto regulations.”
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