Last minute! Review from Europe to Binance
European regulators of Binance of the world’s largest crypto currency market, the US, the crypto-currencies for users outside China and Turkey, which allows to make partial share swap launched an investigation after the new application.
According to the Financial Times report, regulators will investigate whether the said stock tokens comply with the rules of the securities market.
Binance’s announcement explained that its share tokens are the product of the Munich-based investment firm CM-Equity, designed in accordance with the EU’s Mifid II market rules and BaFin’s banking regulations. In the statement, he explained that the stock tokens are designed to track the share performance of the companies they represent, but cost a fraction of the share price and are backed by physical shares.
DERIVATIVE PRODUCTS OR SECURITIES?
Share tokens can only be made on the basis of Tesla and Coinbase for now. Accordingly, users will be able to trade with share tokens for a certain part of Tesla, rather than a whole share of Tesla, which is traded for more than $ 700.
While experts pointed out that Binance’s move will be the largest flow to the tightly regulated market through digital assets that are not yet subject to any regulation, the UK Financial Executive Committee stated that “they are working with the company to understand the product, the regulations that may apply to it, and how it is marketed.”
BaFin, the German Banks Regulatory and Supervisory Authority, finds it unsuitable to comment for confidentiality reasons, but said, “Tokens represent securities if they are transferable, can be traded on a crypto exchange and have economic powers such as dividends or cash payments. They are therefore subject to the obligation to issue a prospectus.” found in the description.
Lawyers also point out that stock tokens are in the gray area. Binance has not clarified whether it is a security or a derivative.
|CryptoCurrency||USD||Change 1h||Change 24h||Change 7d|
|Bitcoin||0.13 %||3.60 %||1.12 %|
|Ethereum||0.45 %||3.79 %||6.89 %|
|Binance Coin||0.12 %||3.62 %||5.32 %|
|Tether||0.64 %||0.49 %||0.40 %|
|Solana||0.48 %||0.70 %||10.39 %|
|Cardano||0.52 %||4.65 %||0.60 %|
|XRP||0.24 %||3.49 %||5.57 %|
|USD Coin||0.59 %||0.39 %||0.37 %|
|Polkadot||0.76 %||5.17 %||5.93 %|
|Dogecoin||1.24 %||2.20 %||3.35 %|
|Avalanche||0.99 %||6.78 %||0.58 %|
|Terra||0.05 %||2.38 %||67.31 %|
|Shiba Inu||0.41 %||8.59 %||13.23 %|
|Crypto.com Coin||0.70 %||7.66 %||20.86 %|
|Wrapped Bitcoin||0.06 %||3.21 %||0.87 %|
|Polygon||3.76 %||0.81 %||21.85 %|
|Litecoin||0.51 %||5.65 %||3.89 %|
|Binance USD||0.72 %||0.35 %||0.67 %|
|Algorand||0.62 %||4.75 %||7.12 %|
|Chainlink||0.14 %||6.68 %||3.30 %|