The major cryptocurrency exchange Binance said on Friday that the day after the Italian regulator joined a series of financial regulators to crack down on the platform, users could no longer buy digital tokens linked to stocks.
The exchange stated on its website: “Effective immediately, stock tokens cannot be purchased on Binance,” adding that it will stop all support in October.
The move follows more and more scrutiny of exchanges by regulators from the United States to Europe and Asia.
The Italian market regulator said on Thursday that Binance-one of the world’s largest platforms-is not authorized to provide investment services and activities in Italy, even through its main website to provide information on derivatives and stock tokens in Italian.
A stock token is a digital version of a stock linked to the value of the relevant stock. Binance provides stock tokens to companies such as Apple, Microsoft, and Tesla.
The German regulator BaFin said in April that Binance may be fined for offering stock tokens for failing to publish an investor prospectus.
The exchange stated that Binance users who hold stock tokens can sell or hold them for the next 90 days, but will no longer be able to sell or close their positions after October 14.
Binance said it is shifting its commercial focus to other products. The spokesperson did not immediately respond to a request for further comment.
© Thomson Reuters 2021