Main navigation

Advertisement

Binance's Allegedly Illegal Stock Tokens Draw Ire of German Financial Watchdog

Wed, 28/04/2021 - 17:58
Regulators are not happy about Binance venturing into tokenized stock trading
Advertisement
Binance's Allegedly Illegal Stock Tokens Draw Ire of German Financial Watchdog
Cover image via stock.adobe.com
Read U.TODAY on
Google News

Leading cryptocurrency exchange Binance has been warned about "probably" violating security laws by Germany’s financial regulator after listing several stock tokens, the Financial Times reports.  

The Federal Financial Supervisory Authority (BaFin) claims that the crypto giant could face a fine of up to €5 million for failing to issue a prospectus for its securities, which is a criminal offense.   

Advertisement

Binance’s new offering could be ultimately banned in Germany.        

Apart from BaFin, the stock tokens are also being scrutinized by the Financial Conduct Authority (FCA) in the U.K.

You Might Also Like

Commission-free stock trading  

As reported by U.Today, Binance made a foray into tokenized stock trading earlier this month. It currently allows users to get zero-fee exposure to four publicly traded companies: Tesla, Coinbase, MicroStrategy, and Apple. It will also list the stock token that tracks the performance of Microsoft later this month.

Advertisement

The tokens could be purchased with the Binance USD (BUSD) stablecoin during U.S. trading hours.

Advertisement
Advertisement
Subscribe to daily newsletter

Recommended articles

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles