{"id":626130,"date":"2023-04-06T01:09:00","date_gmt":"2023-04-06T06:09:00","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/04\/06\/binance-under-scrutiny-dubai-cracks-down-on-crypto-license-applicants-report\/"},"modified":"2023-04-06T01:09:00","modified_gmt":"2023-04-06T06:09:00","slug":"binance-under-scrutiny-dubai-cracks-down-on-crypto-license-applicants-report","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/04\/06\/binance-under-scrutiny-dubai-cracks-down-on-crypto-license-applicants-report\/","title":{"rendered":"Binance Under Scrutiny, Dubai Cracks Down On Crypto License Applicants: Report"},"content":{"rendered":"
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You are here: Home<\/span><\/a><\/span>\/<\/span> News<\/span><\/a><\/span>\/<\/span> Binance Under Scrutiny, Dubai Cracks Down On Crypto License Applicants: Report<\/p>\n

\"Binance\"<\/p>\n

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Dubai is ramping up its oversight of crypto license applicants, with officials at the Virtual Assets Regulatory Authority (VARA) requesting more information from Binance, one of the world\u2019s largest crypto exchanges, according to the latest report<\/a>, citing a person with knowledge of the matter.<\/span><\/p>\n

The move comes after last year\u2019s bankruptcy of digital-asset exchange FTX and reflects a wider trend of increasing global scrutiny of the crypto industry.<\/p>\n

Dubai, which has been trying to foster innovation while ensuring proper oversight of the crypto industry, is a significant hub for Binance\u2019s Middle Eastern expansion plans.\u00a0<\/p>\n

The emirate\u2019s stricter approach could pose a challenge for Binance CEO Changpeng \u201cCZ\u201d Zhao, who is based in Dubai and is under pressure from US regulators.<\/p>\n

According to anonymous sources, VARA requests similar information from other international companies seeking permits. The regulator is looking for information on ownership, board procedures and auditing at the global group level of Binance, which has a complicated corporate structure with several holding companies.<\/p>\n

Binance has said that \u201cit has disclosed all necessary information to VARA on a proactive basis and in line with regulatory and fiduciary responsibilities.\u201d However, according to sources, the queries from VARA are taking longer to address due to Binance\u2019s size and complexity.<\/span><\/p>\n

In early February, a senior executive at Binance said that the exchange had been trying to hire an auditor for its entire balance sheet, but finding a firm able to take on the work was challenging.\u00a0<\/p>\n

The recent lawsuit by the US Commodity Futures Trading Commission against the largest crypto exchange and its CEO, CZ, for alleged derivatives violations has added to the pressure on the company.<\/p>\n

Moreover, as reported<\/a> by TronWeekly, in Q1, the company suffered a major setback as it saw a 16% decline in its market share, resulting in a closing market share of 54%. The primary reasons behind this decline were the CFTC\u2019s legal actions against Binance and the termination of its zero-fee trading program.<\/p>\n

US Regulators Pressure Binance As Net Flow of Funds Decline<\/h2>\n

According to a report<\/a> by Glassnode, a crypto data analyst, US regulators are exerting pressure on Binance. Given the uncertainty surrounding the solvency of banks and exchanges, market sentiment has been evaluated by examining the net flow of funds into and out of the exchange.<\/p>\n

Glassnode\u2019s analysis indicates that the net flow of stablecoins on the Ethereum blockchain through the company has been negative, with a 14-day Exponential Moving Average (EMA) displaying a net outflow of -$295M\/day, the largest in history.\u00a0<\/p>\n

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Source: Glassnode<\/figcaption><\/figure>\n<\/div>\n

In addition, the overall USD value of Binance reserves has decreased by 45.1% or $29.6 billion but has stabilized at $35.9 billion since the FTX fallout. The drop can be attributed to the decline in token prices and significant redemptions of BUSD, a stablecoin.\u00a0<\/p>\n

Nonetheless, the YTD market rally has pushed the total USD-denominated value of Binance reserves back above $35 billion this week.<\/p>\n

\"Ezoic\"<\/a><\/span><\/span><\/span><\/p>\n<\/div>\n

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Read More<\/a>
\n Mishal Ali<\/p>\n","protected":false},"excerpt":{"rendered":"

You are here: Home\/ News\/ Binance Under Scrutiny, Dubai Cracks Down On Crypto License Applicants: Report Dubai is ramping up its oversight of crypto license applicants, with officials at the Virtual Assets Regulatory Authority (VARA) requesting more information from Binance, one of the world\u2019s largest crypto exchanges, according to the latest report, citing a person […]<\/p>\n","protected":false},"author":1,"featured_media":626131,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22426,534,1584],"tags":[],"class_list":{"0":"post-626130","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-binance","8":"category-financial","9":"category-under"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/626130","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=626130"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/626130\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/626131"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=626130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=626130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=626130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}