Bainance announced yesterday that it intends to suspend trading in company stock tokens it launched a few months ago. The exchange did not give a clear reason for its decision, but said it would focus on its other products from now on.
to the the report Coin Telegraph, the token trading of the world’s largest companies, which was recently launched in Bainance Exchange, is set to stop soon. Bainance announced on Friday that stock tokens trading would soon be unavailable. According to Bainance officials, the exchange will no longer support stock tokens trading from October 14, 2021 (October 22).
Bainance has said about this:
Users who have recently purchased stock tokens can hold or sell their assets for the next 90 days. As of 19:55 (UTC time) on October 14, 2020, users will no longer be able to sell their stock tokens as usual or close their trading position. After that at 13:30 (UTC time) on October 15, 2020 (October 23) all trading positions of the stock tokens market [به صورت خودکار] Will be closed.
Walter Bloomberg tweeted:
The Hong Kong Stock Exchange Commission has said that no license has been issued for Bainance’s regulated activity in the country.
This claim has not yet been confirmed, but if true, it can be said that the pressure of regulators on Bainance is hitting the activities of the world’s largest exchange.
In late April, there were reports that European and British regulators were examining the market for binary stock tokens. The devices were intended to verify the legal compliance of the stock tokens market with securities laws in their respective countries. In this market, stock tokens are offered by companies such as Coin Base and Tesla.
The German Financial Supervisory Authority (BaFin) has previously said about corporate stock tokens without specifically mentioning Bainance:
Basically, these items are on the agenda: if these tokens are transferable, can be traded in an exchange, and have economic legal aspects such as dividends or cash settlement, they are considered as securities and will be required to file a record of their activities. Was.
The German Financial Supervisory Authority later specifically referred to Bainance and said that the exchange had not filed a case concerning the stock tokens market.
Bainance has been under intense pressure from regulators in the spring and summer of this year. During this time, authorities in various countries have taken action against Bainance or examined the legal compliance of the exchange’s activities.
In June, the UK Financial Services Authority (FCA) ordered Bainance to suspend all legislative activity in the country. Earlier this month, Japan’s financial watchdog accused Bainance of operating in the country without a license. Authorities in Ontario, Canada, recently took action against the exchange, which eventually led Bainance to suspend services to its citizens.