In the midst of escalating challenges for Binance, the leading cryptocurrency exchange, regulatory scrutiny has heightened with Dubai’s Virtual Asset Regulator, VARA, closely monitoring its activities following recent legal entanglements.
The chain of woes began with CZ, the founder, pleading guilty to operational lapses, followed by football icon Ronaldo facing a lawsuit over his promotion of Binance products. In response, VARA asserted its commitment to stringent regulatory measures, emphasizing rigorous KYC protocols and due diligence in assessing Binance’s operations.
Notably, Binance FZE holds a Minimum Viable Product Operational License, granting access to a limited client base. Presently, approximately 180 qualified investors and institutional clients have been onboarded under this license.
VARA refrained from commenting on regulatory actions in other jurisdictions but reaffirmed its vigilant monitoring of Binance FZE’s activities. Emphasizing market integrity, consumer protection, and ecosystem security, VARA pledged to closely observe unfolding developments.
The delay in Binance’s licensing in the UAE stands in contrast to other entities like M2 in Abu Dhabi, RAIN crypto broker, CoinMENA, and Fasset, which have secured full licenses.
Richard Teng, the newly appointed CEO of Binance, faces a daunting task ahead as the company navigates these challenges in the coming months. With regulatory oversight intensifying, Binance’s strategies and compliance measures will undoubtedly come under further scrutiny amidst this evolving landscape.