Binance stops selling digital equity issues
Binance stops selling digital equity issues

Binance will no longer offer digital versions of stocks like Apple and Tesla as the cryptocurrency exchange faces increasing pressure from regulators around the world.

In terms of trading volume, the world’s largest cryptocurrency exchange said in a blog post that it will end support for stock tokens, crypto assets linked to the value of some stocks.

Binance offers the tokens through a partnership with CM-Equity AG, a licensed investment firm based in Germany.

Depending on the platform, each token is fully backed by shares owned by CM-Equity AG.

The platform made it clear that it cannot buy stock tokens through its website.

The company stopped supporting stock tokens after October 14, and users can sell or hold them for the next 90 days.

According to Binance, European users can transfer their assets to the new CM-Equity AG portal, which is intended to support users residing in the European Economic Area (EEA) and users residing in Switzerland.

The portal will open in the weeks leading up to Binance closing all positions on October 15. The company said it decided to shift the focus of its business to other products.

In April of this year, the German financial regulator warned investors that Binance's offering of stock tokens might violate securities regulations. He added that the company may face fines for not publishing an investment prospectus for these instruments.

Binance has stopped selling shares

A Binance spokesperson said: “As the cryptocurrency ecosystem evolves and Binance grows as a company, we are constantly evaluating our products and working with our partners to meet customer needs.

"We attach great importance to our legal obligations and cooperate with regulators and law enforcement agencies," he added.

Binance stock tokens allow users to buy specific shares of listed companies without paying commissions.

Shares on display include Apple, Microsoft, Tesla, Coinbase and MicroStrategy. Prices are calculated in the company's constant currency, pegged to the US dollar, which is the Binance US dollar.

Binance is facing increasing heavy blows from regulators around the world. The British market regulator last month banned the company from providing regulated services in the country. Meanwhile, the Italian securities regulator said that Binance is prohibited from providing securities services to Italians.

Regulators in Japan, Canada and Thailand have also issued warnings about Binance.



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