By Hassan Mehmood (Saudi Arabia)
The Binance blockchain has had its fair share of run-ins with regulatory authorities in the United States. There have been rumors that the Commodity and Futures Trading Commission (CFTC) has been conducting an inspection. However, Binance owner Changpeng Zhao has declined these allegations. Now the exchange is under fire by financial agencies outside of America. The Federal Financial Supervisory Authority has issued a warning to the blockchain company about violating the securities laws under their jurisdiction.
As directed by a Financial Times article, the exchange has listed several stock tokens without getting proper approval from the BaFin. The regulatory body claims that Binance could be convicted to serve a fine of about $5 million for failing to submit proper documentation for its securities. In case of ignorance and non-compliance, the operations of the exchange can also be banned in Germany.
The new Zero-fee Securities Project by Binance has been Getting a Lot of Attention
Earlier this month, Binance started a new project, giving the investors a chance to gain exposure in big company stocks like Tesla, Coinbase, MicroStrategy, and Apple Inc. The users of Binance would be able to gain a commission-free and zero-fee staking opportunity in the largest and most profitable organizations in the world with the help of tokenized stock trading.
These new Binance tokens are tied to the value of the stocks and allow the investors to multiply their investment. The registered users of Binance would be able to invest in these tokens with the help of Binance USD stablecoin. The BUSD stablecoin has increased the interest of investors from every part of the world in Binance and played an important role in adding more traffic to its 100 million user base.
UK Security Authorities also Dealing Coarsely with Binance’s New Stock Token Project
Binance has introduced a new and innovative way to allow users outside of the USA to gain exposure in the biggest and most successful company stocks. The Financial Conduct Authority (FCA) of the UK is still in the process of negotiation and understanding about this first-of-the-kind investment method. CZ, CEO of Binance, told the media that the crypto exchange enterprise wishes to provide its users with transparent, accessible, cost-effective, and seamless exposure in the US stock market.
However, this concept is new, and it is taking more time for the conventional financial regulatory agencies to work out ways and fully grasp the concept. This type of exposure opportunity would drive away from the attention of the investors from their native stock markets and could present a threat of dividing the shares of the localized public companies into the US stock markets.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.