Cryptocurrency exchange Binance has announced it will no longer support the trading of stock tokens. The decision comes against the backdrop of an ongoing regulatory crackdown, with Hong Kong becoming the latest to declare that the platform is not licensed to provide such services in its jurisdiction.
Stock Tokens No Longer Available for Purchase on Binance.com
Binance, the world’s leading digital asset exchange by daily volume, is ceasing support for stock tokens. The coin trading platform explained that the move is part of its continuous evaluation of products, but it also comes amid an increasing pressure on the exchange from regulators around the world. On Friday, the crypto company said:
Today, we are announcing that we will be winding down support for stock tokens on Binance.com to shift our commercial focus to other product offerings.
The exchange pointed out that the suspension is “effective immediately,” with stock tokens already unavailable for purchase on Binance.com. The platform will not support any stock tokens after Oct. 14, 2021 but investors will be able to hold and sell them over the next 90 days.
The announcement further details that “all stock token positions on Binance.com will be closed at 2021-10-15 13:30 (UTC).” Binance said the closing prices will be based on actual executed prices after the market opens for trading on Oct. 15. It warned these may be different from the rates registered a day earlier. A Binance spokesperson was quoted by the Wall Street Journal as stating:
We believe that shifting our commercial focus to other product offerings will better serve our users for the long term.
Residents of the European Economic Area (EEA) and Switzerland will have an option to transfer their stock tokens to a new portal to
