Binance Stops Support for Securities-Based Tokens


From October 14, 2021, Binance will stop supporting securities-based tokens as multiple regulators around the globe have come out against the crypto exchange giant.

July 16, 2021, | AtoZ Markets – Cryptocurrency exchange Binance today announced that it will end support for tokens based on the securities of various public companies, three months after the launch of the service.

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

Binance began offering tokenized shares to customers 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 tokens in collaboration with the German company CM-Equity AG. Service attracted the attention 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.

The tokenized shares are still available on the FTX exchange, which also offers them in collaboration with CM-Equity AG. Nothing is known about the regulators’ claims to FTX in this regard.

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