Binance Exchange announced that they will no longer add any stock token at their exchange and also they will delist existing stock tokens soon.
Three month ago, Germany’s Federal Financial Supervisory Authority raised an issue against Binance to bring stock tokens Trading at their exchange. German authorities said Binance is violating laws & rules by connecting the stock market with crypto market without any legal permission or authorisation.
And also U.K.’s Financial Conduct Authority raised an issue against Binance to add stock tokens at their platform and said whether Binance is really following security rules before launching trading of stock tokens.
Now after three months of the issue being raised by Germany authorities, UK’s FCA and other European countries, Binance announced to cease their stock token trade offers.
” Binance will no mor ebiy stock tokens and it is effective from today. And those token holders are requested to sell their tokens before 14 October. If holders will not close their order then at 15 October they will close their position”.
Binance launched his token trading facility in April 2021. They started stock token trading facility with the collaboration of German financial services firm CM-Equity.
Today Exchange said CM-Equity AG is starting to make their own stock trading platform for specially residents of the European Economic Area (EEA) and Switzerland. Binance users will be able to access the stock trading portal of CM-EQUITY AG from Binance directly.
“Those users may transition their stock token balances to CM-Equity AG once its new portal is established,” said Binance. “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.”
Still here Binance is not talking about this matter with full transparency. They didn’t reveal the main reason why they are closing this facility.