Binance to List Apple and Microsoft Stock Tokens Amid Regulatory Scrutiny

  • Binance has unveiled the date and time for new Stock Tokens listing.
  • The stock tokens of Microstrategy, Microsoft, and Apple will go live from 26th to 30th April 2021.

Binance, the largest cryptocurrency exchange by volume, has unveiled three new stock tokens to be listed on their Binance Stock Token program. The latest stock tokens come despite the ongoing scrutiny over the previously listed ones.

According to the exchange, Microstrategy (MSTR), Apple (AAPL), and Microsoft (MSFT) will be made available for trading on the 26th, 28th, and 30th of April 2021 respectively. Microstrategy (MSTR/BUSD) will lead the way by going live on April 26, 2021, at 1:30 PM UTC, followed by Apple (AAPL/BUSD) on April 28, 2021. Finally, Microsoft (MSFT/BUSD) will conclude the last round of the listing.

Binance under investigation for previous listings

Binance Stock Token was launched to give retail traders the opportunity to access stocks trading on traditional stock exchanges. Unfortunately, their previous listings are undergoing critical scrutiny as the required bodies have raised red flags against the underlying assets.

The Financial Conduct Authority (FCA) has disclosed that they are closely working with the exchange to better understand the products in question, and how they are marketed without ignoring the regulatory framework that guides their operations. Amid the regulatory struggle, customers on Binance are permitted to use Binance USD (BUSD), a native stablecoin issued by the exchange to obtain as little as one-hundredth of the regular stock.

BaFIN, a German regulator, did not confirm whether an investigation has been launched into the Binance Stock Token listings on Tesla and Coinbase. However, they clarified the demand of the law by stating that a cryptocurrency exchange can list a token if it is transferable and has economic entitlement. In this case, they perfectly fit within the security requirement and demand the publication of the prospectus.

Binance strictly maintains that the tokens do not require prospectus as they can only be traded within the realms of the CM-Equity. Also, they are in line with the banking regulations of BaFIN and Mifid II market rules. Contrary to the usual benefits of securities, Binance claims that the Coinbase and Tesla holders do not have any voting right, though they are entitled to potential dividends.

More stock tokens to be launched soon

As part of their announcement, Binance has assured traders that their listed stock tokens are in full compliance with the regulations. They are also backed by the depository portfolio of the said securities possessed by the CM-Equity AG.

According to the exchange, more stock tokens traded by the CM-Equity will make their way onto their platform as they are constantly observing the market demand. It is worth noting that the trading of the stock tokens will go by the usual traditional exchange hours. It will also follow the jurisdiction restriction as clarified by the CM-E. For now, residents of the United States, Mainland China, Turkey, and a few other regions are not eligible to trade in the stock tokens.

 

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Steve has been a blockchain writer for four years, and a crypto enthusiast for even longer. He is most excited by the application of blockchain to solve the challenges facing developing nations.

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