Crypto exchange Binance announced Friday that it is ceasing trading of its stock tokens. Users of Binance.com will no longer be able to buy stock tokens, effective immediately, said Binance.
Existing stock tokens holders should sell their holdings before October 14, it 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, or BaFin, said Binance may be in violation of the country’s securities laws in connection with its stock tokens offering.
Besides the German regulator, the U.K.’s Financial Conduct Authority was also reportedly examining whether Binance complied with security rules before launching trading of stock tokens.
Binance launched stock tokens trading in April of this year via German financial services firm CM-Equity. The exchange today said CM-Equity AG is setting up its own stock tokens trading portal for residents of the European Economic Area (EEA) and Switzerland and that Binance users in these regions could utilize that portal once launched.
“Those users may transition their stock token balances to CM-Equity AG once its new portal is established,” said Binance. “The portal is scheduled to be open approximately two-to-four weeks before 2021-10-15 (UTC), and additional KYC measures will be requested by CM-Equity AG to complete the transition.”
It’s unclear why Binance had to cease its stock tokens trading service when other exchanges including FTX and Bittrex Global offer similar service via CM-Equity AG. The Block has reached out to Binance and will update this story should we hear back.
Binance also appears to be under scrutiny for its primary offering of cryptocurrency trading in several countries around the world. Regulators in the U.S, the U.K., Italy, Japan, Thailand, Poland, and the Cayman Islands, have all either issued warnings or taken action against the exchange recently.
© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
News Source from TheBlockCrypto.com