Binance stops selling Facebook, Tesla, and Google stock tokens, halting all operations which prevent users from buying and selling tokenized stocks of popular equities as we are reading more in our latest binance news.
After the financial regulators scrutinized Binance’s stock tokens, the exchange decided to stop selling them. The notice from the exchange reads:
“Effective immediately, new stock tokens are unavailable for purchase on Binance.com, and Binance.com will no longer support any stock tokens after 14 October 2021.”
Binance stops selling the tokenized stocks and said it will stop the stock tokens so it can focus on other product offerings. Launched back in April, the stock tokens are tokenized versions of popular equities like Facebook, Tesla, Google, and Coinbase among others. The tokens are listed on the exchange in a new partnership with German Investment firm CM-Equity and the company also helped the FTX exchange and Bittrex with similar stock tokens services. The users who hold stock tokens on the exchange have 90 days to sell them or move their holdings to a new CM-equity portal. The portal is expected to open before October 15 this year and a few hours after the announcement, the Hong Kong Securities and Futures Commission warned consumers that the exchange is not registered or licensed to offer these types of tokens.
Though unmentioned in the Binance announcement, German financial regulators BaFin wrote that they have reasons to believe that the stocks violated securities laws. Likewise, the UK FCA launched an investigation to determine whether the tokens were indeed securities. German and UK regulators said that Binance failed to file the needed prospectus before rolling out of the stock tokens. Hong Kong’s financial regulator warned that they are securities under the Securities and Futures Ordinance as Thomas Atkinson who is the SFC Executive Director of Enforcement said:
“The SFC does not tolerate any violations of the securities laws and will not hesitate to take enforcement action against unlicensed platform operators where appropriate.”
Binance has been a target for regulators across the world given its size and number of users. Over the past 24 hours, Binance hosted more than $14 billion in trading volume. Coinbase which is the first runner-up processed $1.5 billion as per CoinGecko. The authorities in the United States, as well as Asia and Europe, said that binance.com is not authorized to provide more services to their citizens but even though the exchange doesn’t operate in certain countries, it’s easy to access the exchange’s services from anywhere in the world with an internet connection.
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