Binance to end support for tokenised stocks

As of October 14, 2021, Binance will stop supporting tokenised stocks. This is stated in announcement on the site.

“As the cryptocurrency ecosystem evolves and Binance grows with the community, we continually assess our own products and work with partners to meet users’ needs,” the company said.

The exchange took this step to shift its commercial focus to other products, Binance representatives said.

Users have 90 days to close positions. On October 15, these will be closed automatically.

Customers in the European Economic Area and Switzerland can transfer their assets to the investment firm CM-Equity AG. Binance said it would launch it “roughly two to four weeks before October 15, 2021.”

In April Binance announced the listing of tokenised stocks, adding Tesla. Later on the platform the trading of Coinbase Stock Token began.

In the same month the bitcoin exchange announced the listing of tokens backed by a portfolio of real shares of MicroStrategy, Apple and Microsoft.

Some European regulators took an interest in Binance’s new service. The Financial Times reported that regulators in the UK and Germany were examining its compliance with local law.

At the end of April BaFin warned investors of possible violations by Binance of securities laws when launching trading of tokenised stocks.

In June, the FCA barred Binance Markets Limited from any regulated activity in the country without prior written approval.

After that, banks Barclays and Santander restricted transfers from UK clients to the Bitcoin exchange, and the payments system Clear Junction refused to process related payments.

The Cayman Islands began a probe into Binance’s operations, Thailand accused the company of operating without a license, Japan issued another warning.

Polish regulators warned consumers about the risks of interacting with the platform, and Italy and Malta — about Binance’s unregulated activities.

Earlier the exchange ceased serving residents of Ontario, the Canadian province and suspended euro deposits via SEPA.

Against regulatory pressure, CEO Changpeng Zhao published an open letter in which he outlined Binance’s plans to ensure compliance and protect customers.

According to the Financial Times, payment networks Visa and Mastercard decided not to sever ties with the platform.

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