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Binance ends sale of share tokens

2021-07-16T12:25:34.447Z


Not only Bitcoin, but also virtual assets in the form of share tokens can be traded on the Binance crypto platform. But after pressure from several authorities, Binance is now terminating the offer.


Enlarge image

Binance boss Changpeng Zhao (archive image)

Photo: DARRIN ZAMMIT LUPI / REUTERS

Binance is one of the largest crypto exchanges in the world.

Here you can not only exchange euros for Bitcoin and other digital currencies, but you can also speculate with new forms of investment, such as so-called share tokens.

According to the analysis service Coinmarketcap, the total trading volume of Binance is supposed to be the largest of all crypto exchanges.

However, Binance has now stopped selling the share tokens under increasing regulatory pressure from various authorities.

This applies from now on, announced the trading platform on its website on Friday.

As of October, they could no longer be traded.

Share tokens are virtual investments that replicate the price of real shares.

Investors could bet on coveted companies like Tesla or Apple via Binance.

If the share price rises or falls, this also applies to the value of the tokens.

However, Binance Germany offered the product without a securities prospectus, which should have been presented to the Bafin.

The Bafin had therefore already criticized a violation at the end of April this year.

The law provides for fines of up to five million euros for such violations.

On Thursday, the Italian stock exchange regulator had made it clear that Binance was not authorized to offer investment services in Italy.

The crypto exchange had provided information on derivatives and share tokens in Italian on its website.

The US Department of Justice and the tax authorities also recently announced that they would be monitoring Binance more closely.

hpp / reuters

Source: spiegel

All tech articles on 2021-07-16

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