Binance and Tokenized Stocks, It's Over
According to a statement, the famous cryptocurrency exchange Binance announces to end all its activities in relation to tokenized stocks.
Thus, as of today, users of the platform are no longer able to purchase these tokenized shares. Current holders of these assets will have to sell their positions before October 14, 2021. If they do not do so by this date, their positions will be automatically closed on October 15 of the same year.
Without giving the real reason for the sudden shutdown of this service, the Binance team explains that the move is meant to refocus their "commercial attention on other product offerings."
Launched last April, this Binance feature offered tokenized versions of stocks subject to high demand, such as those from Tesla, MicroStrategy or even Google.
This offer was created thanks to a collaboration between Binance and CM-Equity AG, a German company specializing in this sector, which also offers its services to the FTX and Bittrex platforms.
Moreover, for users wishing to keep their shares tokenized, they will soon have the possibility of migrating their positions to a CM-Equity AG portal, still in development to this day. According to Binance, this portal should be accessible 2-4 weeks before the October 15, 2021 deadline.
Binance's press release specifies, however, that only users residing in the European Economic Area (EEA) and Switzerland will be able to use this option. Additionally, users will need to complete an Identity Verification (KYC) process in order to complete the transition of their positions.
Binance's move follows a statement by the German Federal Financial Supervisory Authority, or BaFin, that Binance is breaking the country's securities laws as part of its tokenized actions.
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