As regulators in multiple countries continue to dig deeper, the cryptocurrency exchange Binance is taking measures to ease the pressure it faces and no longer sell digital tokens and stocks of companies such as Apple, Tesla and Coinbase.
In a statement The exchange announced on its website that it will no longer purchase tokens “with immediate effect” and will cease all support for them from October 14. This decision is when foreign financial regulators began to warn investors that the company may have violated securities rules.
In a growing number of regulatory issues, #Cryptocurrency exchange #Binance Announced that it will immediately stop selling stock tokens.https://t.co/zd4ug5n94w
— Forbes Middle East (@Forbes_MENA_) July 16, 2021
according to Reuters, Several countries have begun to warn against the company, and Germany warned investors in April. Since then, other countries have followed suit. Lithuania warned Binance about its “unlicensed investment services”, while Italy said they have no right to provide investment services in the country.
The British Financial Conduct Authority (FCA) and the Hong Kong Securities and Futures Commission (SFC) have also issued warnings and initiated investigations on whether the company is allowed to engage in regulated activities.
The Securities Regulatory Commission said in a statement: “Anyone who violates the relevant provisions may be prosecuted, and if convicted, will be subject to criminal sanctions.”
After review by financial regulatory authorities #Binance Stock tokens, the world’s largest cryptocurrency exchange has decided to stop selling them and will no longer support any stock tokens after October 14, 2021 https://t.co/iljDkYgi8A after @Liam_galas
— Decryption (@decryptmedia) July 16, 2021
Binance allows users to purchase certain company stocks without paying commissions and settle the price in its own stable currency Binance dollars. The company stated that they are only re-evaluating their products and services during the investigation.
“With the development of the crypto ecosystem and the growth of Binance, we continue to evaluate our products and cooperate with our partners to meet the needs of our users,” a spokesperson told NBC Finance Channel.
“We take our legal obligations very seriously and cooperate with regulators and law enforcement agencies in a collaborative manner. We do not comment on specific issues or inquiries,” they added.
