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Consumers risk losing all their investments on crypto-asset related services, it said. Later on Friday, Lithuania's central bank said it had warned Binance about its "unlicensed investment services". It was offering tokens for companies including Apple, Microsoft, and Tesla. It was not immediately clear whether global regulators have coordinated their moves, which have created unprecedented global pressure on a major cryptocurrency firm.īinance, the world's biggest exchange by spot trading volumes last month, offers a wide range of services to users, from cryptocurrency spot and derivatives trading to digital wallets and stock tokens. Binance Cryptocurrency Exchange Faces Criminal Complaint From Thailand SECĪ Binance spokesperson declined to comment on the SFC's move, which came a day after Italian regulators made a similar announcement.īinance does not currently have exchange operations in Hong Kong and takes its legal obligations seriously, the spokesperson added.In April, Germany’s financial regulator had said that they had “reasonable grounds” to believe that these stock tokens violated securities laws, and the UK’s financial regulator is investigating the matter. The day before, Italy’s financial regulator referenced stock tokens in a notice that said Binance can't operate in the country. īinance said it halted the offering to focus “on other product offerings,” but a few hours earlier, Hong Kong’s Securities and Futures Commission warned consumers that Binance is not "licensed or registered" to offer tokenized stocks, which it said are “likely to be securities” under Hong Kong law. CM-Equity still operates similar services on FTX and Bittrex. Customers couldn’t buy new stock tokens and Binance said it wouldn’t support the tokens at all after October 14. In mid-July, Binance ceased tokenized stock trading without warning. Binance listed Coinbase stock on the day of the listing and also sold tokenized equity in companies such as Tesla, Apple and Microsoft. Unlike regular stocks, Binance’s tokenized stocks did not pay dividends to customers, who also had no shareholder voting rights.īinance launched tokenized stocks on April 12, two days before crypto exchange Coinbase was listed on the Nasdaq. In Binance’s case, CM-Equity operated as the broker it sold tokenized, fractionalized of stocks it owned to Binance’s customers. Tokenized stocks are cryptocurrency derivatives that track the value of securities. If customers do not sell the tokens or move them to CM-Equity AG’s platform, Binance will sell the tokens for them on October 15. They can sell them on Binance up until October 14. Binance suddenly shut down its tokenized stock service in July after several regulators said the tokens likely constituted illegal securities offerings.Ĭustomers in the European Economic Area and Switzerland can now migrate tokenized stock from Binance to CM-Equity AG, the German investment firm that Binance had partnered with to list the tokenized stocks.Ĭustomers from other nations, such as the United Kingdom, cannot migrate tokens to CM-Equity AG. Crypto exchange Binance is allowing European customers to migrate their tokenized stocks to another company.