Binance halts trading in stock tokens
Today, 17.07.2021, one of the main cryptocurrency exchanges, BINANCE, made a statement to stop trading in token stocks without substantiating such a decision. Apparently, regulatory pressure has done its job.
At the moment, it has become impossible to buy them on Binance. For users who own these assets in their wallet, it is possible to sell them within 3 months. But if this is not done before October 14, 2021, then these positions will close automatically.
For traders from the European Economic Area (EEA), it is possible to transfer their assets to the services of the German financial services provider – CM-Equity AG, which will become available from the beginning of October this year, but at the same time the user is required to go through all stages of KYC registration.
“As Binance evolves and cryptocurrency systems become more capable, we always increase the performance of our products and expand the capabilities of these systems for integration with partners, which makes it possible to meet all the needs of our users. Today, we are forced to stop supporting marker stocks on our platform so that we can focus on other products, “Binance management commented on its statement.
British and European authorities began to show high interest in cryptocurrency exchange after tokenized shares of the largest companies were placed on Binance, arguing that this was a violation of securities and bond laws.
“Tokens that sell on Binance give the owners of the companies additional profit in the form of dividends, they are securities with enormous economic strength, and the issuers of these shares must be published with a prospectus of issue,” says the Federal Agency for Financial Economic Supervision of Germany (BaFin).
The CEO of Changpeng Zhao has been under enormous pressure from financial and regulatory authorities, but he agrees to cooperate with them on any issues.
“Tightening the regulation of cryptocurrency assets is a sign that the industry sees huge potential in cryptocurrency,” explained Changpeng Zhao.
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