Ever Since the month of June, Binance has been making many alarming announcements for its users in different countries from around the world. Unfortunately, the announcements Binance has made have only hampered its business and market reputation.
This time again, Binance has made a grieving announcement for its users performing trades through the stock tokens. It was just recently when Binance had released its stock tokens that had gained tremendous user following and popularity among the user community.
However, Binance has just announced that it has to shut down the stock tokens at the earliest. The announcement in regards to the shutting down of stock tokens was made by Binance on Friday, July 16, 2021.
In the announcement, the cryptocurrency exchange has announced that with immediate effect, the stock tokens are being discontinued. The firm confirmed that no more stock tokens will be issued or would be available for purchasing. The firm confirmed that their website “Binance.com”, would no longer provide users with the stock tokens for purchasing.
Furthermore, Binance announced that the overall support for the stock tokens would be revoked by October 14, 2021. After that, any user still having the stock tokens on them would have their value turned into zero.
The firm clarified that they have given the date until October 14 to make it a 90-day process. In the next 90 days, the users will have the option of either holding onto their tokens for the next 90 days, or they can sell them.
After October 14, 2021, 19:55 (UTC), the users will no longer be able to close their positions or sell the tokens manually. After that, all positions for the stock tokens will be closed on Binance.com on October 15, 2021, and the timing would be 19:55 (UTC).
It has been revealed that the reason behind Binance shutting down the stock tokens is due to Hong Kong regulatory authority going against its stock offering activities.
One of the international news reporting firms has revealed that Binance had recently faced a lot of backlash from the regulatory authority in Hong Kong. The Hong Kong authority named the SFC has claimed that in Hong Kong, Binance Group is not registered or licensed to carry out regulated activity.
This meant that the Hong Kong regulatory was soon going to follow Binance and add to the list of regulators currently scrutinizing the exchange. In the past couple of months, one of the largest cryptocurrency exchanges by market capitalization and trading volume has been facing a lot of heat from regulators.
It faced the heat for the very same reason the Hong Kong regulator made an announcement against the exchange. Even the FCA in the United Kingdom is after Binance for the same kind of conduct but that involves cryptocurrency offerings. This is constantly hurting the market reputation and worth of Binance as one of the largest cryptocurrency exchanges.