Binance makes tough decision over Apple, Tesla and others
- The change is effective immediately and share tokens can no longer be purchased.
- Users who currently have stock tokens can keep them for the next 90 days, but must sell them no later than October 14th.
- European users can transfer their assets to CM-Equity AG after the new portal has been set up, probably two to four weeks before the final sales date.
As the most widely used and popular cryptocurrency exchange in the world, Binance has undergone serious scrutiny. Around the world, Binance has faced a number of challenges and restrictions from governments and regulators.
It wasn’t long before they felt the effects.
Binance recently announced that it is dropping stock tokens and will no longer facilitate their trading on its platform.
The company previously introduced stock tokens in April this year, which customers can use to buy stock representations without paying commission fees for five publicly traded companies: Apple (NASDAQ :), Coinbase, Tesla (NASDAQ :), Microsoft (NASDAQ.). 🙂 and MicroStrategy. Binance had offered the tokens through a partnership with CM-Equity AG, a licensed investment company based in Germany. But it all collapsed.
The reasons for it
Binance announced in a blog post that the decision was made with the aim of shifting the commercial focus to other product offerings. It is still unclear whether this reflects the real motive of the stock market.
In April, the German financial supervisory authority, the Federal Financial Supervisory Authority (BaFin), began to subject the product to an in-depth review and informed investors that it had “reasonable grounds” to believe that Binance would oppose the launch of its share token offerings violated the securities laws of the country.
Regulators in Japan, Canada, Thailand, the UK and Italy have also issued warnings about Binance.
According to Thomas Atkinson, SFC Executive Director of Enforcement,
“Investors should beware of the risks of trading virtual assets on an unregulated platform. If the platform goes offline, breaks down or is hacked, investors could run the risk of losing all of their investments held on the platform. ”In fact, the company could now face fines for failing to publish prospectuses for the instruments.
The main dilemma here is: why is Binance pulling out? Is that because of all of the previous warnings from regulators? Or is it because the vendor decided that their trade was not making enough profit to warrant a continuation?
It’s unclear whether global regulators coordinated their moves that put overwhelming global pressure on Binance.
When asked to comment on the situation, Binance remained reluctant. However, DailyCoin is actively working to collect more information and provide an update on the history.
What does it mean for Binancer?
The change took effect immediately and share tokens can no longer be purchased. Binance users with current stock token holdings can sell or keep them for the next 90 days, according to the stock exchange, but will no longer be able to sell or close positions as of October 15.
European users have the opportunity to transfer their positions to CM-Equity AG after the new portal has been set up, probably two to four weeks before the sales date.
On the downside
- Binance has been under serious scrutiny over the past few months, but the company has shown its strength and made sharp decisions under pressure. In the past, this has been an important factor in its impressive survival and growth.
- Whether Binance can survive this regulatory onslaught depends on the strength of its leadership. The sheer size of Binance and its global reach will also play a crucial role.
- Binance has stated that they are committed to advancing the crypto ecosystem.
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