Binance announces it will stop trading stock tokens
Binance announces it will stop trading stock tokens By Editor DiarioBitcoin

Cryptocurrency exchange Binance reported that it is ceasing its stock token trading offerings but there is deadline to sell holdings.
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Cryptocurrency

exchange

Binance announced today in press release that it will cease trading its stock tokens. Binance.com users will no longer be able to buy stock tokens, effective immediately, Binance

said.

Holders of existing stock tokens should sell their holdings by Oct. 14, 2021, the company said. If they don’t sell by that date, their stock token positions will be closed on Oct. 15.

The move comes three months after Germany’s Federal Financial Supervisory Authority, BaFin, said Binance

may be violating the country’s securities laws in connection with its offering of stock tokens.

In addition to the German regulator, the UK’s Financial Conduct Authority was also examining whether Binance

complied with security rules before launching stock token trading.

Binance launched stocktoken trading in April this year through German financial services firm CM-Equity. However, the exchange said today that CM-Equity AG is setting up its own stock token trading portal for residents of the European Economic Area (EEA) and Switzerland and that Binance

users in these regions would be able to use that portal once launched.

“Those users can transfer their stock token balances to CM-Equity AG once their new portal is established,” Binance said. “The portal is scheduled to be open approximately two to four weeks prior to 2021-10-15 (UTC), and CM-Equity AG will request additional KYC measures to complete the transition.”

As The Block notes , it’s unclear why Binance so abruptly suspended its stock token trading service when other exchanges, including FTX and Bittrex Global, offer a similar service through CM-Equity AG

.

It’s worth noting that Binance is under international scrutiny not precisely for trading stock tokens but, in general, for its core cryptocurrency trading offering in several countries around the world. U.S. regulators, <a href=”https://www.diariobitcoin.com/mercados/exchang

See also  Miami Mayor Francis Suarez expects residents to be able to pay taxes with Bitcoin as early as October

en/binance-suspends- withdrawals-in-pounds-blocked-by-united-kingdom-payment-services/”>UK, Japan, Poland, Thailand and the Cayman Islands have issued warnings or taken action against the exchange. The most recent was Italy yesterday.

Binance’s statement

We publish a literal translation of some of the paragraphs from Binance’s statement:

“As the crypto ecosystem evolves and Binance grows with the community, we continually evaluate our products and work with our partners to meet the needs of our users. Today, we are announcing that we will discontinue support for stock tokens on Binance.com to shift our business focus to other product offerings. Effective immediately, equity tokens are no longer available for purchase on Binance.com, and Binance.com will no longer support any equity tokens after October 14, 2021 at 19:55 (UTC).

Users who currently have stock tokens can sell or hold them for the next 90 days. Users will no longer be able to manually sell or close their positions after October 14, 2021 at 19:55 (UTC). Thereafter, all stock token positions on Binance.com will be closed on 2021-10-15 13:30 (UTC). Please note that closing prices will be based on actual prices executed after the market opens at 13:30 (UTC) on 10/15/2021 (UTC) and may differ from the previous day’s market prices.

Please note that all stock tokens listed on https://binance.com/ are products issued and sold by CM-Equity AG, Germany.”

Sources: Binance Press Release, The Block

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