Binance Stops Promoting ‘Stocks Tokens’ After Hong Kong SEC Points a Warning
The Securities and Futures Price (SEC) of Hong Kong issued a warning on Friday against the main cryptocurrency exchange, announcing Binance is now not licensed to sell “inventory tokens” in the city.
Previously, other regulators possess moreover raised considerations about Binance promoting tokenized stocks, including Germany.
Tokenized stocks are digital resources which shall be backed by the underlying listed veteran stocks. The regulator notes that Binance offers shopping and selling companies in these “Stock Tokens” in different jurisdictions and is now concerned that they could perchance well even be offered to Hong Kong merchants.
“The SFC wants to kind it hunch that no entity in the Binance team is licensed or registered to habits ‘regulated task’ in Hong Kong.”
The markets watchdog further stated that such tokens are “securities” in the city below the Securities and Futures Ordinance (SFO). As such, marketing and marketing and distributing them is a “regulated task” that requires a license from the SEC except an appropriate exemption.
“The SFC would now not tolerate any violations of the securities criminal tricks and won’t hesitate to salvage enforcement motion against unlicensed platform operators where appropriate.”
Thomas Atkinson SFC Government Director of Enforcement.
Hong Kong plans to lift in legislation requiring all crypto exchanges in the city to be licensed. Whereas exchanges can prepare to be licensed by the SFC, they’re now not required to at most up-to-date.
In step with Binance, it at veil would now not operate in Hong Kong and continues to desire with regulators and law enforcement.
Earlier on Friday, the exchange stated it could perchance in point of fact well live promoting the merchandise.
