It appears that Binance is finally waving the white flag. The company this morning issued a statement indicating that it is “ceasing support for stock tokens.” The halting of the tokens follows a global regulatory crackdown being experienced by the firm, with the Hong Kong Securities and Futures Commission the latest to indicate that the company is not licensed or regulated in the city.
Hong Kong is just the latest in a series of regulatory agencies that have cracked down on binance for its stock tokens, with recent jurisdictions including Thailand, Italy, the United Kingdom, and the Province of Ontario, Canada, among others. The regulator effectively warned that the sale and distribution of such tokens in the city requires a license, with the move evidently being the final straw for the crypto exchange.
In its statement this morning, Binance commented that it is “continually evaluating our products and working with our partners to meet our users’ needs.” As a result, the company indicated that it is halting support for its stock tokens as it looks to focus on other product offerings. The changes are effective immediately, with support to entirely disappear by October 14.
“Today, we are announcing that we will be winding down support for stock tokens on Binance.com to shift our commercial focus to other product offerings. Effective immediately, stock tokens are unavailable for purchase on Binance.com, and Binance.com will no longer support any stock tokens after 2021-10-14 19:55 (UTC).”
The firm commented that users may either sell or hold such tokens over the next 90 days, after which they will no longer have the ability to manually sell or close positions, with all such positions being closed out the following day.
Information for this briefing was found via Binance. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.