Binance allows customers to move their stock tokens before shutting down the services as we are reading more in our latest binance news today.
Crypto exchange Binance allows European customers to migrate their tokenized stocks to another company as the platform shut down its tokenized stock services suddenly after several regulators said that the tokens constituted illegal securities offerings. The customers in the European Economic Area and Switzerland are able to migrate their tokenized stocks from Binance to CM-Equity AG which is the German investment company that Binance partnered with to list the tokenized stocks.
Customers from other nations like the UK are not able to migrate their tokens to CM-Equity AG and they can sell them on binance until October 14. if the customers don’t sell the tokens or move them to the other platform, Binance will sell the tokens. The tokenized stocks are crypto derivatives that track the value of securities and in the case of Binance, CM-Equity operated as the broker and sold tokenized stocks that it owned to the customers. Unlike regulator stocks, Binance’s tokenized stocks did not pay dividends to customers that had no shareholder voting rights.
Binance allows customers to move their stock tokens after it launched the tokenized stocks on April 12, two days before the exchange Coinbase was listed on the NASDAQ. Binance listed the Coinbase stocks on the day of the listing and sold tokenized equity in companies like Apple, Tesla, and Microsoft. The exchange ceased tokenized stock trading without warning so customers were not able to buy new stock tokens and binance said it will not support the tokens at all after October 14. CM-Equity will operate similar services on Bittrex and FTX. Binance said it halted the offering to focus on other products but a few hours later, the Hong Kong Securities and Futures Commission warned consumers that Binance is not licensed or registered to offer the stocks which said could likely be securities under the Hong Kong law.
The day before, the Italian Financial regulator referenced stock tokens in a notice and said that Binance cannot operate in the country. Germany’s financial regulator also said that they had reasonable grounds to believe that these stock tokens violated securities laws and the UK’s financial regulator is now investigating the matter.
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