Regulators Verify Binance Tokenized Shares

The sale of exchange tokens on Binance interested European regulators.

Launched this monthtokenized shares, which allow Binance customers to purchase share tokens using Binance USD (BUSD), may fall under the definition of securities.

The UK regulator Financial Conduct Authority said it is studying the new financial product and the rules under which it should be traded on the market. 

German regulator BaFIN has not confirmed, underwaydid an investigation into Binance stock tokens, but noted that if the tokens have economic rights such as dividends, they are securities and "subject to an obligation to publish a prospectus."

In turn, Binance states that the productscomply with European Union Mifid II market rules and BaFin banking rules and are not securities. According to Binance, holders of Tesla and Coinbase tokens do qualify for potential dividends, but do not receive the voting rights associated with regular securities.  

In addition, Binance has partnered with the German financial services company CM-Equity, a regulated organization offering financial products in accordance with regulatory requirements.

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