Last Updated on April 30, 2021 by Jason
The Financial Supervisory Authority in Germany says that Binance might be violating European security rules, with its recent release of stock tokens. The stock tokens track Coinbase and Tesla, and have been flagged as suspicious.
BaFin says that Binance has violated Article 3 Paragraph 1 of the European Prospectus Regulation. The violation can be punished with a fine of up to $6 million USD, which would be 3% of Binance’s annual profits.
Hong Kong has already raised red flags around Binance, and the Financial Conduct Authority, which regulates the U.K., is currently “working with the firm to understand the product, the regulations that may apply to it and how it is marketed.”
Binance’s stock tokens let Binance clients buy a fraction of one share using Binance currency.