Binance suspends stock tokens as regulators draw a circle

Jul 25, 2021 0 comments

image: ft.com.

As crypto exchanges face increasing pressure from regulators around the world, Binance will no longer offer digital versions of stocks such as Tesla, Apple and Coinbase.

The world’s top cryptocurrency exchange in terms of trading volume said in a blog post on Friday that it will end support for “stock tokens,” crypto assets tied to the value of certain stocks.

Binance provided tokens through a partnership with CM-Equity AG, a licensed investment company based in Germany. According to Binance, each token was fully backed by shares held by CM-Equity AG.

Binance said stock tokens couldn’t be purchased on the website and would “become effective soon.” The company will no longer support stock tokens after October 14, and users will be able to sell or retain them for the next 90 days.

According to Binance, European users will be able to transfer their stakes from CM-Equity AG to the new “portal” about two to four weeks before Binance closes all positions on October 15.

The company said it had decided to “shift our commercial focus to other product offerings.”

In April, German financial watchdog warned investors that Binance may have violated securities rules with the launch of stock tokens and could be fined for failing to publish an investor’s prospectus. He added that he has sex.

“As the crypto ecosystem evolves and Binance grows as a company, we continue to evaluate our products and work with our partners to meet the needs of our users,” a Binance spokeswoman told CNBC. Told.

“We take our legal obligations very seriously and work with regulators and law enforcement agencies. We do not comment on specific issues or inquiries.”

Binance stock tokens allow users to buy a portion of a listed company’s stock without paying a fee. The shares offered include Apple, Coinbase, Microsoft, MicroStrategy and Tesla. The price was settled in Binance USD, the company’s own dollar pegs table coin.

Binance faces growing crackdowns from regulators around the world. Last month, a UK market watchdog banned the company from providing regulated services domestically, but Italian securities regulators allowed Binance to provide investment services to Italians on Thursday. Said not.

Regulators in Japan, Canada and Thailand have also issued warnings about Binance.

Last week, Binance CEO Changpeng Zhao (known in the crypto industry as “CZ”) said his company “still has plenty of room for growth” and “compliance is a journey” in the early digital asset market. That’s it. “

Sourced from texasnewstoday.com.

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