TL;DR Breakdown
- Binance has declared that it will put an end to stock tokens immediately.
- The reason is still not clear, and it seems that the exchange won’t hold them anymore.
- According to Binance, by October 14th this year, at precisely 7:55 pm UTC, these tokens will be unavailable.
Binance is planning to remove a relatively popular and comparatively short-lived feature of the platforms. The world’s biggest crypto exchange released a notice on Friday stating that the platform will put an end to stock tokens.
Stock tokens were introduced in the platform back in the month of April, and in around three months, it has discontinued supporting the trading of these tokens. The existing holder of these stock tokens will be provided with a certain amount of time to put an end to their activities.
Why put on end to stock tokens?
Since their release in the month of April, stock tokens have been under severe scrutiny by authorities. According to Germany’s BaFin, if the stock tokens represent a stock and are divisible into multiple parts and also pays dividends on equity holding, it is also applicable to the set of regulations that a stock follows.
With the increased scrutiny and the Hong Kong government’s imposition of restrictions on Binance services and several warnings by Japan, the UK, Italy, and the Cayman Islands, Binance was forced to put an end to stock tokens, as rightly pointed out by Walter Bloomberg.
Holders have a time of 90 days.
Those who are still holding on to their stock tokens and seek more profits will have the chance to put an end to stock token trading in 90 days. As the statement released by Binance said, by 2021-10-14 19:55 (UTC), no person will be able to choose their closing positions and sell their stock tokens.
Owing to the difficult regulatory scenario for Binance across various countries, it is hard to say that the sale and trading of the stock token will be resumed anytime soon. It could be that Binance has put an end to stock tokens permanently.
