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Major cryptocurrency exchange Binance Stops Selling ‘Stock Tokens’ After Regulatory Scrutiny

Major cryptocurrency exchange Binance Stops Selling ‘Stock Tokens’ After Regulatory Scrutiny

July 16 - Major cryptocurrency exchange Binance said on Friday that users can no longer to buy digital tokens linked to stocks, a day after Italian regulators joined a string of financial watchdogs to crackdown on the platform.

“Effective immediately, stock tokens are unavailable for purchase on Binance.com, and Binance.com will no longer support any stock tokens after 2021-10-14 19:55 (UTC),” the exchange said on its website, adding it would shift its commercial focus to other product offerings..

The move comes after growing scrutiny of the exchange by regulators from the United States to Europe and Asia.

Italy's market regulator said on Thursday that Binance - one of the world's biggest platforms - was not authorised to provide investment services and activities in Italy, even via its main website which offered information in Italian on derivatives and stock tokens.

Stock tokens are digital versions of equities pegged to the value of the relevant share. Binance was offering stock tokens for companies including Apple, Microsoft, and Tesla

BaFin, the German regulator, said in April that Binance risked being fined for offering stock tokens without publishing an investor prospectus.

Binance users holding stock tokens can sell or hold them over the next 90 days, the exchange said, but will no longer be able to sell or close positions after October 14.
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