Connect with us

News

As Hong Kong Adds To Mounting Regulatory Pressure Binance Has Stopped Trading Stock Tokens Exchanges Bitcoin News

Binance Stops Trading Stock Tokens as Hong Kong Adds to Regulation Pressure Cryptocurrency exchange Binance has stated that it will no longer accept stock token trading.
The decision comes amid a regulatory crackdown, with Hong Kong becoming the latest country to announce that the platform is not registered to provide such services in its territory.
Stock Tokens Are No Longer Available for Buy on Binance.com Binance, the world’s largest digital asset exchange by daily volume, is discontinuing stock token support.
The move, according to the coin trading platform, is part of its ongoing product evaluation, but it also comes amid increased regulatory pressure on the exchange from around the world.
The crypto exchange said on Friday: Today, we are announcing that we will be discontinuing support for stock tokens on Binance.com in order to focus our commercial efforts on other product offers.
The suspension is “instant,” according to the exchange, with stock tokens already unavailable for purchase on Binance.com.
After October, the platform will no longer support stock tokens.
Investors will be able to hold and sell them for the following 90 days, starting on April 14, 2021.
“All stock token positions on Binance.com will be closed at 2021-10-15 13:30 (UTC),” according to the release. Binance stated the closing prices will be based on real executed prices when the market opens for trade on Oct. 15.
It cautioned that these may differ from the rates recorded the day before.
According to the Wall Street Journal, a Binance spokeswoman stated, “We feel that changing our commercial focus to other product offers will best serve our customers in the long run.”
Citizens of the European Economic Area (EEA) and Switzerland will be able to transfer their stock tokens to CM-Equity AG’s new platform, which will launch in early October.
Binance said that the move will be subject to further know-your-customer (KYC) requirements, noting that all stock tokens offered on Binance.com are goods issued and sold by CM-Equity, a company based in Germany.
The Hong Kong Securities Commission has issued a warning against purchasing stock tokens on Binance. Binance’s decision comes as a increasing number of regulators have expressed concern about the exchange’s sale of tokenized stocks and other products and services without license.
The list includes regulators in Italy, Lithuania, the United Kingdom, Japan, and Germany, where the Federal Financial Supervisory Authority, Bafin, declared earlier this year that tokens linked to stocks of businesses like Tesla are securities if they can be transferred and sold on a cryptocurrency exchange.
The Securities and Futures Commission (SFC) of Hong Kong is the latest regulatory body to issue a warning against Binance.
The SFC stated on Friday that it is “aware that Binance has offered trading services in stock tokens in a number of jurisdictions and is concerned that these services may also be offered to Hong Kong investors.” The commission also stated that “no business in the Binance group is licensed or registered to conduct’regulated activity in Hong Kong.”
If that is the case, they should be subject to the SFC’s regulatory authority.
The marketing and distribution of such tokens, “whether in Hong Kong or targeting Hong Kong investors,” is a “regulated activity” that requires a license, according to the regulator.
The securities commission warned that anyone selling stock tokens in the city without registering might face criminal charges, and urged potential investors to be “very cautious” when buying stock tokens on unregulated platforms.
What are your thoughts on the ongoing regulatory pressure on Binance, a cryptocurrency exchange?
Tell us what you think in the comments section below.
Shutterstock, Pixabay, and Wiki Commons image credits Disclaimer: This page is solely for educational purposes.
It is not a direct offer to purchase or sell, nor is it a recommendation or endorsement of any products, services, or enterprises.
Bitcoin.com does not offer financial, legal, or accounting advice.
Neither the firm nor the author is liable for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in this post, whether directly or indirectly.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Must See

More in News