Binance Danger Growing: Last 1 Week For BaFin
#BaFin's warning to #Binance remains effective.
The danger in #Germany regarding Binance, which is the world's largest cryptocurrency exchange by trade volume, is growing.
🚨BaFin Warns Binance
Germany's financial market regulator BaFin recently warned Binance, according to the Financial Times. This warning about the Binance cryptocurrency exchange violating Germany's securities laws has not been withdrawn despite the passage of time, and the danger is growing.
BaFin issued the warning in late April. Although the details of the warning regarding Binance's recently released stock tokens are not shared, it can be seen that Binance will not be allowed to do so easily in Europe.
🚨Binance's Tokenized Shares Are A Problem
Binance copied the model of the FTX cryptocurrency exchange, launching and trading the stocks of companies such as Tesla, Apple, and Microsoft without publishing the prospectus. The exchange stated that the situation was a misunderstanding and emphasized that the relevant tokens were not actually securities.
In a statement made by the crypto currency exchange, he stated that the tokens in question are offered by a third party broker, so they do not have the status of securities. BaFin did not withdraw his warning. Binance has 1 week left to respond to BaFin for now. If Binance fails to come up with a solution that satisfies BaFin, tokenized stock products could be banned entirely in Germany.
🚨Binance: There Was a Misunderstanding
Binance first launched the related product with Tesla, and it cannot be traded in countries such as the US, Turkey and China for regulatory reasons. Binance's ability to easily open it for trading in European markets created a controversy. BaFin's warning did not wait too long, and it was expected.
Although Binance is the world's largest cryptocurrency exchange by trading volume, it needs to be mindful of regulatory issues. Binance US, the subsidiary of Binance in the US, has actually taken an important step in this regard by recently recruiting Brian Brooks, former president of OCC.
It is anticipated that Binance may have problems with regulations within Europe or even in Turkey. Especially the guide, recently published by MASAK, brought strict regulations to the exchanges and Binance has to adapt to this.