Binance Holdings Ltd. is gradually withdrawing its support for crypto shares, or "stock-featured tokens," just a few months after the cryptocurrency exchange began offering the product. The products, launched last April and issued and sold by CM-Equity AG, are symbolic representations of shares in companies like Apple, Tesla, and Coinbase Global Inc.
On Friday, the Hong Kong Securities and Futures Commission announced that it is reviewing the status of stock-featured tokens as securities and stated that there are no Binance-affiliated companies licensed or registered to conduct "regulated activities" in Hong Kong. The stock-featured tokens raised concerns immediately following their launch. A report published by CoinDesk just two weeks after the product's launch indicated that regulators in countries like the UK and Hong Kong were already scrutinizing the offerings.
In a blog post last Friday, Binance stated: "We will gradually stop supporting the tokens on Binance.com to shift our commercial focus to other product offerings," adding: "This decision takes effect immediately, and the tokens are no longer available for purchase on Binance; the exchange will not support any stock tokens after October 14."
Binance, the largest cryptocurrency exchange by trading volume, has faced months of regulatory challenges. Bloomberg reported that several U.S. agencies are investigating the company. Recently, regulators in the UK imposed restrictions on an affiliate, and Thailand filed a criminal complaint against the company for operating without a license.
The blog post concluded that Binance users who currently hold stock-featured tokens can sell or retain them during the next 90 days.
