Binance will stop supporting securities-based tokens (tokenized shares)Binance often likes to copy services from the similarly unregulated FTX exchange, as it did with FTX BULL / BEAR tokens - Binance delisted FTX credit tokens after significant user losses, and a month later added their clones. Similar clones of services Binance also made with the tokenized shares of real companies (securities), and almost immediately came to the attention of the financial regulators of the European Union - European regulators have initiated a check on the legality of the offer of tokenized shares on the unregulated platform Binance.
It is worth noting that the German Financial Regulator (BaFin) launched an investigation into Binance's violations in launching the tokenized shares service and the Hong Kong Securities and Futures Commission (SFC) also said that such offers of "securities" are unacceptable.
Binance's reaction was evident and was announced today (July 16, 2021) in the official news Ending support for exchange tokens on Binance.com and switching to CM-Equity AG for EEA users:
Bitcoin exchange Binance will stop supporting tokenized shares starting Oct. 14, 2021. Allegedly, Binance took this step "to shift its commercial focus to other products." Binance began offering tokenized shares to customers in April.
"Currently, users only buy tokens from CM-Equity AG and sell them to it. This does not require a prospectus," - Binance officials lied.
According to the notice, it is no longer possible to buy them on Binance. Users who have such tokens in their accounts are invited to sell them within 90 days. On October 15, all active positions will be closed automatically. Residents of the European Economic Area are given the option of transferring existing positions to the token provider service.
"As the cryptocurrency ecosystem evolves and Binance grows with the community, we are constantly evaluating our own products and working with partners to meet user needs," the company said.