{"id":41593,"date":"2021-04-29T09:15:34","date_gmt":"2021-04-29T06:15:34","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=41593"},"modified":"2025-08-30T19:28:16","modified_gmt":"2025-08-30T16:28:16","slug":"bafin-flags-potential-binance-breaches-in-tokenised-stock-service-launch","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bafin-flags-potential-binance-breaches-in-tokenised-stock-service-launch\/","title":{"rendered":"BaFin flags potential Binance breaches in tokenised-stock service launch"},"content":{"rendered":"<p>Federal Financial Supervisory Authority BaFin <a href=\"https:\/\/www.bafin.de\/SharedDocs\/Veroeffentlichungen\/DE\/Verbrauchermitteilung\/weitere\/2021\/meldung_210428_binance_deutschland.html\" target=\"_blank\" rel=\"noreferrer noopener\">warned<\/a> investors about possible violations of securities laws by Binance in launching trading of tokenised stocks.<\/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.<\/p>\n<p>Two weeks later, the Financial Times reported <a href=\"https:\/\/forklog.com\/en\/news\/media-european-regulators-to-scrutinise-binances-launch-of-tokenised-stock-trading\">that a review<\/a> by regulators in the United Kingdom and Germany of its compliance with local law. Binance said at the time that tokenised stocks were being handled by the regulated investment group CM-Equity and complied with the provisions of MiFID II (the EU directive on markets in financial instruments).<\/p>\n<p>In the document, BaFin states that the instruments are offered by Binance Germany GmbH &#038; Co. The regulator contends that this firm offers \u201csecurities in the form of tokens TSLA\/BUSD, COIN\/BUSD and MSTR\/BUSD without the necessary prospectuses on the website.\u201d BaFin emphasised that CM-Equity is not mentioned in the marketing material.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cPublic offering of securities without an approved securities prospectus\u201d<\/em>, the regulator said.<\/p>\n<\/blockquote>\n<p>BaFin did not specify what action it would take against Binance, but cited potential fines in similar cases: \u20ac5 million or 3% of last year\u2019s revenue. The law also allows an additional penalty equal to twice the amount of profit gained.<\/p>\n<p>As reported, on 26 April Binance <a href=\"https:\/\/forklog.com\/en\/news\/binance-to-list-tokenized-shares-of-microstrategy-apple-and-microsoft\">announced<\/a> the listing of tokens backed by a portfolio of real shares in MicroStrategy, Apple and Microsoft.<\/p>\n<p>Follow ForkLog news on <a href=\"https:\/\/www.facebook.com\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Facebook<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>BaFin warned Binance of potential securities-law violations during the launch of tokenised stock trading.<\/p>\n","protected":false},"author":1,"featured_media":41594,"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":[1527,744,36,1211],"class_list":["post-41593","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bafin","tag-binance","tag-regulation","tag-stock-market"],"aioseo_notices":[],"amp_enabled":true,"views":"21","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/41593","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=41593"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/41593\/revisions"}],"predecessor-version":[{"id":41595,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/41593\/revisions\/41595"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/41594"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=41593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=41593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=41593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}