The history of company stock tokens comes to an end on Binance. The exchange announced this Friday, July 16, that, with immediate effect, its Binance.com site will no longer have support for trading these tokens.
Through a statement, the exchange assured that the cessation of support for this type of tokens, which represent shares of publicly traded companies, is given to shift your business focus “to other product offerings.”
From this Friday, Binance users cannot open new positions with these tokens, although the operations already open they can stay until October 14. On that day, all existing positions corresponding to the stock tokens will be closed automatically, based on the market opening prices that day.
Until then, “users who currently have share tokens can sell or retain them,” the text adds.
Although Binance alleges a change of scene in its line of business, as the cause to stop supporting share tokens, another could be the reason. Since its launch, This product has been in the eye of European regulators. Particularly in the United Kingdom and Germany, as reported by CriptoNoticias.
Indeed, Binance has given its European users an alternative to continue trading stocks as they have been doing. While they will not be able to do so on Binance.com, they will have the ability to trade on the website of CM-Equity AG, a partner of the exchange that issued and endorsed the Binance share tokens.
The portal will be enabled between two and four weeks before the deadline for open operations on Binance. From the start of the website, users will be able to transfer their balances in share tokens to CM-Equity AG, Asset manager licensed in Germany.
Regulatory issues for Binance
Binance’s stock market shutdown comes amid a wave of bans the exchange faces to operate in various countries.
The most recent case was reported in this medium this Thursday, July 15. Italy’s National Securities Market Commission issued a statement assuring that Binance Group companies they are not authorized to offer investment services in the European country, which joins other jurisdictions that have done the same.
As we have reviewed in this newspaper, before the Italian regulator, six countries had already issued alerts against the exchange’s services: United Kingdom, Singapore, Thailand, Cayman Islands, Japan and Malaysia.