Binance announced on 16th July that it had “with immediate impact” stopped trading tokenized digital tokens representing shares, one of its most recently offered services. This is due to regulatory issues in many countries regarding the stock market.
We reported in April 2021 that a major cryptocurrency exchange included support for a new product that allows its users to interact with digital tokens that are fully protected and represent shares.
After TheSis shares were launched, Binance extended its service to Consist Coinbase. It went public along with Apple and Microsoft.
The company was subject to scrutiny in Germany. Within weeks of the business’ launch, the Financial Guidance Commission raised concerns about tokenized shares.
Tokenized trading stopped
Binance decided that this particular service should be halted, as was revealed on July 16th.
With immediate effect, share tokens are unavailable for purchase on Binance.com, and Binance.com will no longer support any share tokens after 2021-10-14 7:55 p.m. (UTC).
Clients who are currently in possession of stock tokens were guaranteed by the exchange that they could “sell or hold them within the next ninety days.” “They will not be able to close or sell their positions after this period manually.”
Binance informed that prices will be based on actual prices once the market opens at 2021-10-15 13:00 (UTC)). “.
Binance displaying a popup notice on stock tokens page
Stock tokens now available on a new platform
The business also kept in view the fact that CM-Equity AG, a Swiss exchange token trading platform, will be set up for European Economic Area (EEA), and Switzerland residents. There will be an option for Binance users to trade as soon as it becomes available.
The company kept in mind that CM-Equity AG will set up its exchange-token trading platform for residents of Switzerland and the European Economic Area. The platform will allow Binance users to trade there as fast as it is released.
Binance is currently under the watchful eye of regulators. While many business partners have been lost, Visa & Mastercard continue to support them. But, they will not stop customers from sending money to Binance accounts by using their cards. The exchange is also in constant collaboration with Visa. She also launched a visa-branded debit card. It is now available to customers in many countries that receive checks from the United States. The United States financial firm has made it very clear that it will continue to offer its assistance.
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