Per a press statement released by Binance earlier today, the leading crypto exchange is no longer going to be offering its users an opportunity to trade tokenized stocks on its platform again.
According to the press release, existing holders of the tokens must sell their holdings on or before the 14th of October. Or risk losing them when their stock positions are closed on the 15th of October.
The news came a few hours on the heels of the warning of Hong Kong’s SFC against Binance, stating the operation of the exchange is not licensed within their jurisdiction.
The watchdog said in its warning that “In Hong Kong, Stock Tokens are likely to be ‘securities’ under the Securities and Futures Ordinance (SFO), and if so, they are subject to the regulatory remit of the SFC.”
It added that “The SFC warns that where the Stock Tokens are ‘securities,’ marketing and/or distributing such tokens – whether in Hong Kong or targeting Hong Kong investors – constitute a ‘regulated activity’ and require a license from the SFC unless an applicable exemption applies.”
Stock tokens are blockchain-based shares of publicly traded companies that one can buy infractions. Binance launched its trading service a few months ago and offered Apple, Coinbase, Microsoft, MicroStrategy, and Tesla tokens. Binance’s total volumes as of the time of the report stood around $1 million.