European regulators have turned their attention to Binance's tokenized stocks, a new type of investment product the crypto exchange launched last week.
In particular, the Financial Times has reported several European regulators, including the UK's Financial Conduct Authority (FCA), are trying to find out whether this new product complies with all the security regulations.
The FCA has reportedly contacted Binance in order to understand the product as well as determine the regulations that may apply to it.
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For its part, German financial regulator BaFin has said that if the tokens are transferable, can be traded on a crypto exchange, provide dividends and are settled in cash, they represent securities. And companies offering them are required to publish a prospectus.
Binance offers the trading of tokenized stocks through German financial services company CM-Equity, which is a regulated entity. CM-Equity ensures that the product complies with regulations.