Binance.com Cease stock tokens trading offering
In July, Binance has announced shutting down its stock token service without warning. It also allows its customers to move stock tokens before services cease.
Crypto exchange Binance lets its European customers migrate their tokenized stocks to another platform. In July, Binance had suddenly ceased its tokenized stock service after several regulators claimed that the tokens likely constituted illegal offerings.
Customers in Switzerland and the European Economic Area can migrate tokenized stock from Binance to CM-Equity AG. it is a German investment company with which Binance had partnered to list the tokenized stocks.
Binance clients from different countries, like the UK, can't move tokens to CM-Equity AG. In any case, they are permitted to sell them on Binance up until October 14. If Binance customers do not move tokens to CM-Equity AG’s platform or sell them by October 14, Binance will sell the tokens for them on October 15.
Crypto derivatives that track the value of securities are known as Tokenized stocks. CM-Equity worked as the broker in Binance’s case wherein it sold tokenized or fractionalized stocks it claimed to Binance’s clients. Binance’s tokenized stocks refrained from paying dividends to its customers, unlike regular stocks, with no shareholder voting rights.
On April 12, Binance launched tokenized stocks. This event took place two days before the crypto exchange platform, Coinbase was listed on the Nasdaq.
Binance suddenly shut down tokenized stock trading in mid-July without warning. Customers aren’t allowed to buy new stock tokens. Binance has also said that it wouldn’t support the tokens at all after October 14. However, CM-Equity continues to operate similar services on Bittrex and FTX.
According to Binance, it halted its token offering to focus more on other product offerings. However, the Hong Kong’s Securities and Futures Commission had warned consumers a few hours earlier that Binance is not "licensed or registered" to offer tokenized stocks.
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