The exchange has warned users about closing stock token positions before they get closed automatically in 90 days
Binance, the biggest crypto exchange, has posted an announcement about ceasing all stock tokens support after October 14th. The users have three months to close their positions manually, otherwise they will be terminated automatically the day after the deadline. The announcement reads that discontinued support for stock tokens is due to shifting the commercial focus onto other products and services.
The EEA customers, as well as those of Switzerland, will have an opportunity to transfer their stock tokens to CM-Equity AG who’s been a technical partner of Binance and in charge of issuing and selling stock tokens listed on Binance.com.
Binance launched tokenised shares on its platform in April. Starting with Tesla, it later added stock tokens of Microsoft, Apple, MicroStrategy and other companies. The users have been able to buy a fraction of a token and enjoy the economic benefit of an actual asset, including potential dividends.
In the last few months Binance has come under the radar of regulators in several jurisdictions. In March the company was involved in CFTC’s investigation proceedings. The commission was looking into whether Binance had allowed U.S. residents to trade crypto derivatives without obtaining a proper license. In May the Department of Justice and IRS initiated the inquiry into a possible violation of money laundering and taxation laws.
The exchange has also become the subject of investigation in Thailand, Singapore, and the Cayman Islands, whereas two UK banks – Barclays and Santander UK – have shut the possibility of making SEPA deposits onto Binance. Italy and the UK have already issued official statements that the exchange cannot offer investment services and operate in their countries.