Main navigation

Binance Fails to Remove BaFin's Warning Over Securities Rules Violations

News
Wed, 05/05/2021 - 13:54
article image
Alex Dovbnya
The German regulator will keep its warning about Binance intact after the exchange failed to persuade it to remove it
Binance Fails to Remove BaFin's Warning Over Securities Rules Violations
Cover image via stock.adobe.com
Read U.TODAY on
Google News

Binance, the largest crypto exchange by reported trading volumes, has failed to remove a warning about violating securities laws from the website of Germany's BaFin, the Financial Times reports. In late April, the German financial regulator warned the exchange about possibly committing a criminal offense by offering stock tokens that represent the shares of such companies as Apple, Microsoft and Tesla, without publishing a prospectus.

Related
Ex-Top Bank Regulator Becomes New CEO of Binance.US

The exchange claimed that the warning was a "misunderstanding." It insists the tokens were not a security since they are being offered through a third-party broker. Binance also does not allow its users to send them to other trading platforms.

Binance has one week left to submit its response to BaFin. Its tokenized stock offering could be ultimately banned in Germany.

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.