• Binance Closes Stock Token Trading Three Months Later

  • On July 16th, Binance reported that one of its newest offerings, trading digital tokens that resemble equity companies, had been suspended “effective immediately.” This comes amid a slew of regulatory concerns for the exchange in a number of nations.

    In April 2021 that it has added support for a new product that allows customers to engage with fully-backed digital tokens that reflect equities stocks. Binance increased its offering to include Tesla shares after it went public, as well as Coinbase, Apple, Microsoft, and MicroStrategy.

    The business, however, came under fire in Germany after the country’s Financial Supervisory Authority expressed reservations about the tokenized shares just weeks after they were launched. Binance has finally chosen to shut down this service, as revealed on July 16th. “Stock tokens are no longer available for purchase on Binance.com, and after 2021-10-14 19:55 (UTC), Binance.com will no longer support any stock tokens.”

    Customers who already own such stock tokens can “sell or hold them throughout the following 90 days,” according to the exchange. They will, however, “no longer be able to manually sell or close their positions” after that time period has passed. Binance stated that the pricing would be “based on actual executed prices after the market opens for trade at 2021-10-15 13:30 (UTC)” once the remaining holdings were closed. CM-Equity AG will, however, launch its own stock tokens trading platform for inhabitants of the European Economic Area (EEA) and Switzerland, according to the business. When it is live, Binance users will be able to trade there.

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