Binance abandons its tokenized stock service without giving any real explanation

Binance and tokenized stocks are over

According to a statement, the popular cryptocurrency exchange platform Binance has announced that it is ending all activities related to tokenized shares.

Thus, as of today, users of the platform are no longer able to purchase these tokenized shares. Current holders of these assets will have to sell their positions before 14 October 2021. If they don’t do so by that date, their positions will be automatically closed on October 15 of the same year.

Without giving the real reason for the sudden termination of this service, the Binance team explains that this decision is to refocus its “ commercial attention on other product offerings “.

Launched last April, this Binance feature offered tokenized versions of high-demand stocks from the likes of Tesla, MicroStrategy and Google.

This offer was made possible through a collaboration between Binance and CM-Equity AG, a German company specializing in this sector, which also offers its services to FTX and Bittrex platforms.

Moreover, for users who wish to keep their tokenized shares, they will soon have the possibility to migrate their positions to a portal of CM-Equity AG, which is still under development at this time. According to Binance, this portal should be accessible 2 to 4 weeks before the October 15, 2021 deadline.

However, Binance’s release states that only users residing in the European Economic Area (EEA) and Switzerland will be able to use this option. In addition, users will have to complete a process of identity verification (KYC) in order to complete the transition of their positions.

Binance’s move follows a statement from the German Federal Financial Supervisory Authority, or BaFin, that Binance would violate the country’s securities laws in connection with its tokenized shares.

Read more – Binance ‘not allowed’ to provide services in Italy, financial regulator warns

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About the author: Clement Wardzala

Binance abandons its tokenized stock service without giving any real explanation

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Editor-in-Chief of Cryptoast, I discovered Bitcoin and blockchain technology in 2017. Since then, I’ve been trying to share quality content so that the sector becomes more accessible to all.
All articles by Clément Wardzala.