Leading cryptocurrency exchange Binance revealed that it’s stopping its support for buying tokens linked to stocks solely 3-months after launching them.
Within an official announcement today, Binance revealed that stock tokens are unavailable for purchase on its website effective immediately, and support for such tokens will endways on 14th Oct., with all positions closed the same day.
The embattled crypto exchange added that the choice had been made to permit it to specialize in other products.
Binance introduced its stock token service earlier in April, permitting users to buy for fractions of shares in companies, starting with Tesla and followed quickly by Coinbase. MicroStrategy, Microsoft, Apple have added shortly after.
It didn’t take long for regulators to boost their eyebrows, with the financial watchdogs of the United Kingdom as well as Germany both expressing concern within the weeks following.
The backlash against Binance has come to a head in recent weeks as a string of regulatory bodies has issued warnings that the cryptocurrency exchange isn’t licensed to offer regulated services in their markets, along with the United Kingdom and Japan.
The most recent of those in Hong Kong, whose markets regulator announced today that Binance isn’t registered to work in its jurisdiction.
CEO Changpeng “CZ” Zhao addressed Binance’s woes in a letter on 7th July, calling compliance a “journey” and spoke of the necessity of “clearer regulatory frameworks” in response to wider adoption of crypto assets.