Binance halts trading in stock tokens with immediate effect

Cryptocurrency exchange

Binance has announced that users can no longer purchase digital tokens linked to stocks, on its platform. Sponsored ”

With immediate effect, stock tokens are no longer available for purchase on Binance.com,” – the exchange announced on its website

. It also added that it will cease all support for them by October 14.

The announcement explained that users who currently held share tokens can sell or keep them within the next 90 days. However, they will not be able to manually sell or close their positions after October 14. At that point, all stock token positions on Binance.com will be closed based on actual realized prices after the market opens on October 15.

Binance

Sponsored Crackdown

The news comes just a day after Italian regulators joined the ranks of those cracking down on the platform. The Commissione Nazionale per le Società e la Borsa (Consob) told Binance that they are not authorized to operate in Italy. This news comes recently after the UK financial regulator closed the door on Binance’s operations in their country.

Binance launched its first share token with Tesla in April. This was followed by share tokens for Apple, Microsoft

and Tesla. However, soon after the launch of the stock tokens, Binance came under the eye of German financial regulator BaFin. They were considering whether these offerings were securities, in which case there was a lack of a prospectus. It was largely this initial scrutiny that triggered what followed. The

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Future of Stock Tokens

The announcement did not give an official reason for the discontinuation

of

stock to

ken

offerings, other than to “shift our commercial focus to other product offerings.” While this experiment with tokenized assets didn’t work out, other projects involving stock tokens are still in the works.

Binance was able to offer its share tokens through Swiss digital asset provider Digital Assets AG. Digital Assets recently announced that it has begun offering tokenized shares on the Solana Blockchain. While Binance share tokens were limited to trading on Binance, Digital Assets’ share token offering on Solana will be available to trade across the ecosystem.

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