Cryptocurrency exchange Binance will no longer support trading of stock tokens starting from October 14, 2021. The exchange said in an announcement its users may sell or hold the tokens over the next 90 days. All stock token positions will be suspended on October 15, 2021.
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"As the crypto ecosystem evolves, and as Binance grows with the community, we are continually evaluating our products and working with our partners to meet our users' needs," the exchange said.
iHodl earlier reported Germany's financial regulator, the Federal Financial Supervisory Authority (also known as BaFin), warned the exchange over its tokenized stocks. According to the watchdog, Binance faces risks of being fined offering security-tracking tokens without first publishing an investor prospectus.
The move comes after Binance came under scrutiny from several watchdogs over unauthorized activity of affiliated companies. As of press time, watchdogs of the United Kingdom, Hong Kong, Poland, Malta, Italy, Cayman Islands and Singapore have issued warnings against the exchange and affiliated companies.
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