Major cryptocurrency exchange Binance said on Friday that users can no longer buy digital tokens linked to stocks, a day after Italian regulators joined a string of financial watchdogs to crackdown on the platform
“Effective immediately, inventory tokens are unavailable for purchase on Binance,” the exchange said on its website, adding that it would cease all enhance in October.
The move comes after growing scrutiny of the exchange by regulators from the US to Europe and Asia.
Italy’s market regulator said on Thursday that Binance – probably the most world’s biggest platforms – was once not authorised to supply investment services and products and activities in Italy, even via its main website which offered information in Italian on derivatives and inventory tokens.
Inventory tokens are digital versions of equities pegged to the value of the applicable share. Binance was once offering inventory tokens for companies including Apple, Microsoft, and Tesla.
BaFin, the German regulator, said in April that Binance risked being fined for offering inventory tokens without publishing an investor prospectus.
Binance users holding inventory tokens can sell or hold them over the next 90 days, the exchange said, but will no longer be capable of sell or near positions after October 14.
Binance said it was once shifting its commercial focus to other product offerings. A spokesperson did not immediately reply to a request for further remark.
© Thomson Reuters 2021
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