Binance crypto exchange warned users that they have three months to close positions on tokenized shares, otherwise they will be closed automatically.
The world’s largest cryptocurrency exchange in terms of trading volume, Binance, announced that it will stop trading in tokenized shares on October 14 this year.
Site users have three months to close their positions, otherwise the platform will automatically close them after delisting tokens.
In a message from Binance, it is said that the termination of trading in tokenized shares is intended to shift the commercial focus to other products of the site.
Tokenized shares are a derivative instrument representing shares converted into a digital security token. A security token is backed by a real asset and tied to its value.
Users from Switzerland and the European Economic Area will be able to transfer their tokenized shares to the service of the investment company CM-Equity AG, a technical partner of Binance.
According to representatives of the exchange, the service will be launched two to four weeks before the termination of trading in tokens.
Binance began trading Tesla tokenized shares in April. Later, the site added tokens to securities of Microsoft, Apple and MicroStrategy and other companies.
Crypto exchange users can buy a fractional part of a token. Token holders are entitled to receive economic profits from securities, including potential dividends.
In the past few months, Binance has been the subject of regulatory scrutiny in several jurisdictions.
In March 2021, the company was found to be involved in an investigation by the United States Futures Trading Commission (CFTC).
The regulator studied the work of the company for the admission of American residents to trade in crypto derivatives in the absence of an appropriate license.
In May, it became known that the Department of Justice and the Internal Revenue Service of the United States initiated an investigation into the crypto exchange for violations in the field of anti money laundering and tax laws.
Thailand , Singapore and the Cayman Islands began checking the site for legality , and two banks, Barclays and Santander UK, suspended operations with crypto exchanges.
In Italy and the UK, the crypto exchange has already issued warnings that it cannot provide investment services and operate in these countries.
