/?pid=germany-s-top-regulator-cracks-down-on-binance-s-stock-tokens-22548

Updated:05:14 AM EDT Mar 29


this is ggmania.com subsite Germany's Top Regulator cracks down on Binance's stock tokens - TechAmok

Germany's Top Regulator cracks down on Binance's stock tokens - [briefly]
01:19 PM EDT - Apr,28 2021 - post a comment

German financial oversight warned investors that Binance, one of the world's largest cryptocurrency exchanges, likely violated securities rules when it launched stock token trading, as part of a crackdown on the crypto industry's foray into highly regulated markets.

Bonn-based BaFin publication a note on its website Wednesday afternoon indicating that the Tesla, Coinbase and MicroStrategy stock movement tracking tokens represent securities requiring a prospectus that has not yet been issued.

BaFin points out that such a violation constitutes a criminal offense punishable by a fine of up to 5 million euros or 3 percent of the last annual turnover of the issuer. The issuer may be liable for any losses of investors.

The watchdog also has the legal power to prohibit the sale of securities.

His move comes after the Financial Times reported last week that European financial regulators were considering Binance's launch of a service allowing investors to trade fractions of shares through products using a German broker as an intermediary. Since last week's report, Binance has expanded the stock program to include other stocks such as Apple.

BaFin's hindsight underscores the challenge authorities face when deciding how to oversee cryptocurrency companies such as bitcoin and ethereum as they encroach on highly regulated markets like stocks.

At the time of the token launch earlier this month, Managing Director Changpeng Zhao said they "demonstrate how we can democratize value transfer more transparently." In a recent interview with Bloomberg, he described his business as "highly regulated".

Binance did not immediately respond to a request for comment on BaFin's statement.

The surge in digital currency prices and the keen interest of retail investors in stock trading have encouraged cryptocurrency exchanges to explore new products mimicking those found in the traditional financial industry. Binance, which claims to be the world's largest cryptocurrency exchange by volume, allows its users to trade a full suite of crypto derivatives, including futures and options.

In marketing material, he said that each token represents a "share in a corporation" and provides the "economic returns" of owning those shares. The tokens are bought and sold using Binance's own cryptocurrency, and Binance has said that a German group, CM-Equity, is responsible for managing services such as custody of acquired shares, as well as controls over compliance and customer knowledge. He was not named in BaFin's statement on Wednesday.

Binance says it does not have an official head office, but affiliates are registered with regulators in countries including the UK. The UK's Financial Conduct Authority told the FT last week that it was "working with the company to understand the [tokens] product, the regulations that may apply and the way in which it is marketed ".

The exchange's stock token trading platform was still accessible on Wednesday afternoon via internet protocol addresses in the UK and Germany. The main stock token exchange website Binance said that only listed residents of China, the United States and Turkey are prohibited from using the service.

Bitcoin has fallen by around $ 10,000 from its all-time high of over $ 64,000 earlier this month, with concerns over the potential of new regulations to shake sentiment. Turkey, home to a large and active crypto market, banned the use of digital coins to purchase goods and services on April 16. The country has also launched a sprawling investigation in several local exchanges.

Short overview of recent news articles

Whatever Happened To Acer? (Mar,29 2024 )

Intel's Battle Has Just Begun (Mar,28 2024 )

Unreal Physics is a new free game on Steam (Mar,27 2024 )

Is The World's Cheapest Hardware Wallet SafePal S1 Worth It? (Mar,27 2024 )

Yes, this was a Bad Idea (Emergency Wall-Mounted PC Build) (Mar,27 2024 )

11 Cool Command Line Programs You Need to See (Mar,27 2024 )

When you Accidentally Compromise every CPU on Earth (Mar,26 2024 )

Everyone Who Tried This Has FAILED - Khadas Mind Modular PC (Mar,24 2024 )

Air Cooling is Dead (Mar,24 2024 )

US Justice Dept. Sues Apple for Monopolistic Behavior in Smartphones (Mar,24 2024 )

Beetlejuice Beetlejuice - Official Teaser Trailer (2024) Michael (Mar,24 2024 )

Alien: Romulus | Teaser Trailer (Mar,22 2024 )

NVIDIA Is On a Different Planet (Mar,22 2024 )

Everyone Needs This and it's Under $10 - Handy Tech Under $100 (Mar,21 2024 )

20 COOL GADGETS FOR 2024 (Mar,21 2024 )

Nvidia's 5090 Is Built From WHAT?! (Mar,21 2024 )

Parasyte: The Grey | Official Trailer | Netflix (Mar,20 2024 )

Fastest m.2 on Planet EARTH | Crucial T705 Nvme Review (Mar,20 2024 )

LG's new 480Hz OLED dual-mode monitor (Mar,20 2024 )

First 9.1 GHz CPU (overclocked 14900KS) (Mar,19 2024 )

Haley Messick - Saatisfaction @bennybenassi - In10sive Mastercamp (Mar,18 2024 )

1000W CPU: The Most Powerful Desktop Processor (Mar,18 2024 )

Expands Snapdragon 8 Series to Cover More Price Points (Mar,18 2024 )

Train Vs Lamborghini (Mar,17 2024 )

Don't use a Microsoft Account! (Mar,16 2024 )

This Ghillie Made from MIRRORS is SHOCKINGLY GOOD (Mar,16 2024 )

How Hackers Deliver Malware to Hack you using Social Media (Mar,16 2024 )

Call of Duty: Warzone Mobile - Launch Trailer (Mar,15 2024 )

Intel's 4th Attempt At Beating Ryzen - "New" 6.2GHz Core (Mar,14 2024 )

Asus Goes Big with Zenfone 11 Ultra (Mar,14 2024 )

House Passes Bill to Force Sale of TikTok (Mar,14 2024 )

Motorola Brings More Affordable 5G Phones to its 2024 Lineup (Mar,14 2024 )

Capristan Swim - Miami Swim Week | Art Basel Miami (Mar,14 2024 )

The Most Stunning All SSD NAS Ever? Inside QNAP's All-SSD (Mar,11 2024 )

M2 vs M3 MacBook Air - ULTIMATE Comparison! (Mar,11 2024 )

Risky PC Experiment: Direct CPU Water-Cooling! Can It Survive? (Mar,11 2024 )

SpaceX Falcon 9 rocket launches 23 Starlink satellites from (Mar,11 2024 )

I tried the Cheapest Arduino Alternative (that Nobody heard of) (Mar,10 2024 )

This is the WEIRDEST PC I've ever seen. (Mar,10 2024 )

Nvidia Retires GTX 16 Series, GDDR7 Arrives, FSR Upscaling Going AI? (Mar,10 2024 )

The New BIOS Hack That Bypasses Every Antivirus (Mar,09 2024 )

Microsoft says it hasn't been able to shake Russian state hackers (Mar,09 2024 )

iOS 17.4, Out Today, Brings Transcripts to Apple Podcasts (Mar,09 2024 )

Microsoft Kills Android-on-Windows (Mar,09 2024 )

Don't Make These Common PC Building Mistakes! (Mar,08 2024 )

Sydney Sweeney Gets Outcast By Her Hooters Co-Workers On 'SNL' (Mar,07 2024 )

How A Journalist Uncovered America's Secret Doomsday Bunkers (Mar,07 2024 )

Government Banning Hardware Wallets? (Mar,07 2024 )

Xiaomi 14 Ultra Full Review: I prefer to call it '13S Ultra' (Mar,07 2024 )

Windows Defender vs Ransomware 2024 (Mar,05 2024 )

>> News Archive <<

TechAmok - Privacy Policy        loading time:0.01secs