Binance suddenly announced that it would stop supporting security tokens (stock tokens)

in the notification Today (July 16) at the latest, Binance announced that it would end its support for security tokens on Binance.com. As of now, security tokens are currently not tradable and Binance will no longer support security tokens after 7:55 p.m. (UTC) on October 14, 2021.

The exchange didn’t say why, but according to our sources, financial regulators in Europe and Hong Kong have accused Binance of not having a license to operate security tokens. Binance has also been repeatedly attacked by supervisory authorities for illegal activities in recent months.

Binance currently supports 5 stock tokens: Tesla (TSLA), Coinbase (COIN), Apple (AAPL), Microsoft (MSFT) and MicroStrategy (MSTR).

5 stock tokens supported on Binance.com

Binance users who currently have security tokens can sell or hold them for the next 90 days. Users will no longer be able to manually sell or close their positions after 7:55 p.m. (UTC) on October 14, 2021. Thereafter, all security tokens on Binance.com will be closed on October 15, 2021 at 1:30 p.m. (UTC).

Switch to CM-Equity AG for EEA users

Binance previously partnered with the German investment firm CM-Equity AG and Switzerland-based Digital Assets AG to offer security tokens.

Binance announced that its partner CM-Equity AG is building its own portal to support users residing in the European Economic Area (EEA) and users residing in Switzerland. These users can transfer their security token credit to CM-Equity AG after the new portal has been set up.

The portal is expected to open about two to four weeks before October 15, 2021, and CM-Equity AG needs additional KYC measures to complete the transition.

What are security tokens?

A security token (stock token) is a token that closely tracks the performance of traditional financial stocks, especially stocks in listed companies. Security tokens are Delta One products backed by physical stocks. This means that for a given momentary movement in the price of the underlying, an identical movement in the price of the derivative is expected.

A security token represents one share of the company being traded and a percent security token represents the same percentage of the company’s shares. However, these security tokens cannot be exchanged for real stocks, users can only sell BUSD when they want to raise funds.

In addition to Binance, FTX and Bittrex also offer similar trading services for security tokens, all through a partnership with CM-Equity AG.

Thach Sanh

According to the AZCoin News

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