Binance exchange gave no indication as to the reason why it is putting a stop to the sales, it only said that it would be shifting its “commercial focus to other product offerings.”
Binance, the world’s largest cryptocurrency exchange, stated today that the purchase of stock tokens on the platform will be phased out after October 14th, or during the following 90 days.
Before the deadline, investors are encouraged to clean their stock token accounts. Big companies like Tesla, Coinbase, Microsoft, and Apple were among the Binance stock tokens.
“we will be winding down support for stock tokens on Binance.com to shift our commercial focus to other product offerings. Effective immediately, stock tokens are unavailable for purchase on Binance.com, and Binance.com will no longer support any stock tokens after 2021-10-14 19:55 (UTC).”, Binance announced in a blog post.
Investors in the European Economic Area (EEA) can now transfer their stock token funds to the CM Equity AG website, according to Binance.
CM-Equity AG is working on a gateway that will allow investors from the EEA and Switzerland to transfer their stock token balances to their website and convert them to CM-Equity AG once the new portal is up and running.
A few weeks before the Binance stock tokens service is totally shut down, the CM-Equity AG webpage will go live.
“The portal is scheduled to be open approximately two to four weeks before 2021-10-15 (UTC), and additional KYC measures will be requested by CM-Equity AG to complete the transition.”
On the one hand, German corporations contributed Binance stock tokens; on the other hand, the German financial authority, BaFin, had notified Binance of regulatory constraints.
Binance may suffer regulatory implications if it fails to comply with the state’s regulations, according to BaFin.
Similarly, the Financial Conduct Authority (FCA) of the United Kingdom claimed that they had been working with Binance to better understand stock tokens, as well as the legislation that may apply to them and how they are marketed.