Binance is no longer going to sell the digital version of stocks like Tesla and Apple. This was indeed something that was bound to happen because the cryptocurrency exchange is facing pressure from different countries all over the world, to be precise, because of the regulations that have been done to the country policy.
Binance Stops Selling Digital Version of Stocks
Binance has been facing a growing crackdown from regulators around the world. Last month, Britain’s markets watchdog barred the firm from carrying out regulated services in the country, while Italy’s securities regulator on Thursday said Binance was not authorized to provide investment services to Italians. Regulators in Japan, Canada, and Thailand have also issued warnings about Binance.
The world’s top digital currency exchange by trading volume said in a blog post Friday that it would end support for “stock tokens,” crypto-assets tied to the value of certain shares.
Binance said stock tokens were unavailable for purchase on its website, “effective immediately.” The company will cease support for any stock tokens after Oct. 14, and users may sell or hold them over the next 90 days.
The company said the decision was taken to “shift our commercial focus to other product offerings.”
“As the crypto ecosystem evolves, and as Binance grows as a company, we are continually evaluating our products and working with our partners to meet our users’ needs,” a Binance spokesperson told CNBC.
“We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion. We don’t comment on specific matters or inquiries.”
Opposition to Binance is rising in industrialised countries.
Due to the lack of written consent, Binance has been prohibited by Britain’s financial authority. This, however, does not preclude commerce by UK residents who have made investments there.
Nonetheless, this is a huge setback in a string of crackdowns by regulators throughout the world, which has spooked crypto investors everywhere, including India.
In spite of the lack of overt oversight for cryptocurrency exchanges in the United Kingdom, businesses offering services like derivatives trading on cryptocurrencies must have a licence to operate. The Financial Conduct Authority (FCA) has demanded that Binance announce on its website by July 30 that “Binance Markets Ltd is not authorised to undertake any regulated activity in the UK.”
A new warning has been issued by Japan’s Financial Services Agency (FSA) about interactions between Binance and Japanese citizens. Binance has not registered with the FSA, which is a requirement for any business offering cryptocurrency exchange services in Japan.
In fact, three years ago it was uncovered for the same reason. If Binance kept operating without a licence, the regulator threatened criminal prosecution.
Final Words
So what happens in the future is still uncertain and we need to keep an eye out for any future announcement made by the company.
