Binance announces that they will no longer sell stock tokens
Cryptocurrency exchange Binance announced today in a press release that it will stop trading its stock tokens, Binance.com users will no longer be able to purchase stock tokens, with imediate effects, Binance said.
Holders of existing stock tokens should sell their holdings by October 14, 2021, the company said. If they don’t sell by that date, their stock token positions will be closed on October 15.
The move comes three months after Germany’s Federal Financial Supervisory Authority, BaFin, said that Binance may be violating the country’s securities laws in relation to its share token offering.
In addition to the German regulator, the UK Financial Conduct Authority was also examining whether Binance was complying with security rules before launching equity token trading.
Binance launched equity token trading in April this year through German financial services firm CM-Equity. However, the exchange said today that CM-Equity AG is setting up its own equity token trading portal for residents of the European Economic Area (EEA) and Switzerland and that Binance users in these regions could use that portal once. thrown out.
“Those users can transfer their share token balances to CM-Equity AG once their new portal is established,” said Binance. “The portal is scheduled to be open approximately two to four weeks before 2021-10-15 (UTC), and CM-Equity AG will request additional measures from KYC to complete the transition.”
As stated by The Block, it is unclear why Binance so abruptly suspended its stock token trading service when other exchanges, including FTX and Bittrex Global, offer a similar service through CM-Equity AG.
It is worth noting that Binance is under international scrutiny not precisely for the trading of stock tokens but, in general, for its main cryptocurrency trading offering in various countries around the world. Regulators in the US, UK, Japan, Poland, Thailand and the Cayman Islands have issued warnings or taken action against the exchange. With the most recent being Italy, yesterday.