{"id":41276,"date":"2021-04-23T10:31:01","date_gmt":"2021-04-23T07:31:01","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=41276"},"modified":"2025-08-30T18:04:47","modified_gmt":"2025-08-30T15:04:47","slug":"media-european-regulators-to-scrutinise-binances-launch-of-tokenised-stock-trading","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/media-european-regulators-to-scrutinise-binances-launch-of-tokenised-stock-trading\/","title":{"rendered":"Media: European regulators to scrutinise Binance&#8217;s launch of tokenised stock trading"},"content":{"rendered":"<p>European regulators have begun examining Binance&#8217;s compliance with transparency and corporate-disclosure rules in launching tokenised share trading, <a href=\"https:\/\/www.ft.com\/content\/cfbd084f-a118-4090-8301-2e45eceac304\" target=\"_blank\" rel=\"noreferrer noopener\">Financial Times<\/a>.<\/p>\n<p><!--more--><\/p>\n<p>On 12 April, the cryptocurrency exchange <a href=\"https:\/\/forklog.com\/en\/news\/binance-to-list-tokenised-tesla-shares\">announced<\/a> the launch of a new service. It is available after completing a KYC procedure to all users, except residents of the United States, Turkey and China.<\/p>\n<p>According to the publication, the UK Financial Conduct Authority is &#8216;studying the product and the rules that may apply to it&#8217;.<\/p>\n<p>Germany&#8217;s Federal Financial Supervisory Authority declined to comment, citing confidentiality of information.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;If tokens can be transferred, sold and you can receive dividends or cash payments on them, they are securities. The obligation to publish a prospectus arises.&#8221;<\/em>, the regulator added.<\/p>\n<\/blockquote>\n<p>Binance told the Financial Times that tokenised shares are processed by the regulated investment group CM-Equity and comply with the provisions of the second edition of the EU Markets in Financial Instruments Directive (MiFID II).<\/p>\n<p>CM-Equity confirmed this information. They stated that tokenised shares operate as a <a href=\"https:\/\/www.investopedia.com\/terms\/t\/totalreturnswap.asp\" target=\"_blank\" rel=\"noreferrer noopener\">total return swap<\/a>.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;Users buy and sell tokens through CM-Equity, which eliminates the requirement to publish a prospectus&#8221;<\/em>, Binance explained.<\/p>\n<\/blockquote>\n<p>According to the publication, product documentation states that CM-Equity is not responsible for custody of the acquired shares, nor for compliance with regulatory requirements and KYC checks.<\/p>\n<p>In April 2021, Binance <a href=\"https:\/\/forklog.com\/en\/news\/brian-brooks-to-lead-binance-us-unit\">hired<\/a> the former head of the Office of the Comptroller of the Currency in the U.S. Treasury, Brian Brooks, as head of Binance US.<\/p>\n<p>In March this year, the staff of the bitcoin exchange was joined by former FATF officials and the former U.S. senator Max Bocus.<\/p>\n<p>Subscribe to ForkLog news on <a href=\"https:\/\/www.facebook.com\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Facebook<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>European regulators have begun examining Binance&#8217;s compliance with transparency and corporate-disclosure rules in the launch of tokenised share trading, the Financial Times reports.<\/p>\n","protected":false},"author":1,"featured_media":41277,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1527,744,1726,36,1211],"class_list":["post-41276","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bafin","tag-binance","tag-fca","tag-regulation","tag-stock-market"],"aioseo_notices":[],"amp_enabled":true,"views":"25","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/41276","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=41276"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/41276\/revisions"}],"predecessor-version":[{"id":41278,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/41276\/revisions\/41278"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/41277"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=41276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=41276"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=41276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}