Binance Drops Securities-Based Token Support

Cryptocurrency exchange Binance today announced it will no longer support security-based tokens.various public companies, three months after the launch of the service.

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“As the cryptocurrency ecosystem develops andAs Binance grows with the community, we continually evaluate our own products and work with partners to meet user needs. “Today we are announcing the end of support for stock tokens on Binance.com to shift the commercial focus to other products.”

Binance started offering customerstokenized shares in April. According to the notice, it is no longer possible to buy them on Binance at this time. Users with such tokens on 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 opportunity to transfer existing positions to the service of the token provider.

Binance offered securities-based tokensin cooperation with the German company CM-Equity AG. The service attracted the attention of the German Federal Financial Supervision Authority (BaFin), which questioned its legality and demanded to issue a prospectus necessary for securities. Binance, in its defense, stated that the tokens comply with the second directive of the European Union "On Markets in Financial Instruments", as well as with the banking requirements of BaFin.

“Currently, users only buy tokens from CM-Equity AG and sell them to it. This does not require a prospectus, ”the exchange argued.

Tokenized shares are still available on the FTX exchange, which also offers them in cooperation with CM-Equity AG. Nothing is known about regulators' claims against FTX in this regard.

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