Binance Takes Out Stock Tokens

After yesterday’s warning from Italian Consob, Binance today officially announced the suspension of the service linked to the exchange of so-called Stock Tokens.

These are tokens that replicate the price of the shares of Apple, Coinbase, Microsoft, MicroStrategy and Tesla, and yesterday they were specifically the subject of the Consob warning.

In fact, the shares with which these tokens are collateralized are regulated financial assets, and as Consob pointed out, Binance does not have the necessary authorizations to allow investments in this type of asset.

Furthermore, Binance has only recently hired a proper compliance specialist, while in the past it has released new products without making sure that they are in compliance with all regulations.

However, it should be added that the Italian Consob has not only targeted the section of the exchange site linked to Stock Tokens, but also that linked to derivative products such as futures and options, and these remain available to everyone for now. It cannot be excluded that, for this other type of product, Binance has a different strategy in mind, such as that of requesting the necessary authorizations in order to continue to offer them in accordance with the law.

Binance closes the stock token service
Binance announces that users who currently hold Stock Tokens still have 90 days to sell them or manually close their positions , which will no longer be possible after 19:55 UTC on 10/14/2021. All resulting positions still open on Stock Tokens after that date will be automatically closed at 13:30 UTC on 10/15/2021.

Alternatively, EEA (European Economic Area) users, and those residing in Switzerland, will be able to migrate their positions on the CM-Equity AG portal, which is expected to be open two to four weeks before October 15th.

The company commented saying:

“We are shifting our commercial focus to other products”.

As for the indefinite suspension of deposits and withdrawals in fiat currency, to date there is still no definite information on any news. Transactions and deposits of fiat currency are also regulated, but adapting to the regulations regarding these transactions may be easier than for example those concerning the provision of investment services.

For example, the Italian Consob took it specifically with Binance’s provision of regulated investment services, including, however, neither simple transactions in fiat currency, nor deposits, nor exchanges or the sale of cryptocurrencies. However, it is likely that Binance will still need specific authorizations to be able to continue operating in fiat currency as well.

Finally, it should be remembered that Binance is a crypto exchange born only four years ago , and which initially did not support any fiat currency.

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