Embattled Exchange Binance Halts Tesla, Facebook, And Google Stock Tokens

Embattled Exchange Binance Halts Tesla, Facebook, And Google Stock Tokens

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Binance Halts Tesla

Yesterday, the largest crypto exchange, Binance, announced it would stop its stock token operations following the altercations the exchange has been facing after the FCA spotlighted it.

The Stock Tokens was launched in April to offer tokenized versions of popular stocks, including Tesla, Facebook, and Google. Binance has been able to sustain this operation through a partnership with a  German Investment Firm, CM-Equity. The firm has also helped two crypto exchanges, Bittrex and FTX, with similar token services.

Since halting their stock token operations, Binance has categorically stated that the exchange will continue to focus on other product offerings.

The notice on Binance.com read,

“Effective immediately, new stock tokens are unavailable for purchase on Binance.com, and Binance.com will no longer support any stock tokens after 14 October 2021.”

A few hours after Binance made this announcement, Hong Kong’s Securities and Futures Commission warned customers that the exchange is neither registered nor licensed to offer such tokens under Hong Kong Law. Similarly, Italy’s Financial regulator, Consob, re-asserted that Binance is not authorized to offer any investment services or stock tokens within the country’s territory.

Implications to the New Reality

After Financial regulators scrutinized Binance tokens, it was only time before the embattled exchange caved in and stopped selling them. Prior to this act of defeat, Binance had tried to reassure its customers that they would survive, implying that the harshly monitored UK entity Binance Market Limited wouldn’t harm the overall exchange. Sadly, that did not plan out as intended.

In practice, after such an announcement, Binance users located in the European Economic Area (EEA) who held these assets have at most 90 days to sell them. The customers can better choose to move their assets to any soon-to-be-launched portal with the German investment firm.

Authorities in the US and part of Asia have likewise warned against Binance providing services to its citizens. This is an ongoing story, and we shall duly keep you informed on any developments.

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