Saturday, October 1, 2022

Binance Wounds Down Sale Of Stock Tokens

The world’s largest crypto exchange Binance has announced to discontinue the trading of stock tokens, which were listed on its platform a few months ago. 

In its announcement, the crypto trading platform has notified that from October 14, 2021, at 7:55 pm UTC, it will stop offering stock tokens. 

Binance gave a few months time to existing stock token holders to make adjustments. It further informed, “Users who currently hold stock tokens may sell or hold them over the next 90 days. Users will no longer be able to manually sell or close their positions after 2021-10-14 19:55 (UTC). Thereafter all stock token positions on Binance.com will be closed at 2021-10-15 13:30 (UTC).”

As per the report, Hong Kong SFC recently stated that Binance is not allowed to sell stock tokens in the city because the crypto exchange has not been registered with the country’s authorities. 

Due to increasing regulatory pressure on the platform, it has continued to hit its operations hard.

The reports published in late April, already notified that European and British regulators had decided to scrutinize Binance’s stock token offering because it did not comply with the countries securities laws. 

Later, Germany’s Federal Financial Supervisory Authority (BaFin) also took the same decision and stated, “Fundamentally […] the following applies: if tokens are transferable, can be traded at a crypto exchange and are equipped with economic entitlements like dividends or cash settlements, they represent securities and are subject to the obligation to publish a prospectus.

For the past few months, Binance is being scrutinized by the regulatory authorities of the different countries. The countries are investing its operation from various compliance perspectives.

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