Binance Is Halting Tokenized Stock Sales!

Binance did not give any reason for the decision, only that it "will shift its business focus to other products.

Coming pressure may affect this decision.

In an announcement issued on Friday, Binance stated that the stock token "will take effect immediately. Binance.com also announced that it will not be able to purchase. As of 19:55 UTC on October 14, 2021, the exchange does not support any stock tokens at all.

Existing share token holders have time. Within 90 days, traders can sell the stocks in their hands or keep them in their wallets. All positions will be closed after 3 months.

The development will confirm that regulatory pressure on the world’s largest cryptocurrency platform continues.

In late April, there were reports that European and British regulators were reviewing whether Binance’s stock offering might violate securities representing Tesla’s stock law. And Coinbase. ) Initially there was no specific comment on Binance, but at the time of registration and announcement of.

In principle, if tokens are transferable, they can be bought and sold on cryptocurrency exchanges, and they have economic rights, such as dividends or cash payments, requiring securities and a prospectus.

Pressure from different countries!

The spring and summer of 2021 is a regulatory challenge for Binance, as multiple countries have taken actions or reviewed their activities from different compliance perspectives.

In the United Kingdom, the Financial Conduct Authority ordered the stock exchange in June to cease all "regulated activities" in the country. In the same month, Japanese financial services agency Binance was accused of operating in the country without proper registration, and new measures were taken against the cryptocurrency exchange in Ontario, Canada, forcing the exchange to suspend all operations there.

Posted Using LeoFinance ^Beta