BaFin Warned Binance About the Possible Problems With Law
BaFin doubts whether Binance’s new tokenized shares comply with the existing securities laws. This new service was launched by the crypto exchange on April, 12th. British and German regulators started checking it within two weeks after the launch. Binance informed them that their tokenized shares are processed by CM-Equity investment group and comply with MIFID II.
BaFin assumes that Binance offers tokenized securities without a prospectus published on their website, which doesn’t comply with the law that obliges them to do it. Тhey also note that CM-Equity isn’t mentioned in any of their marketing materials.
The regulator doesn’t accuse Binance directly yet but they warn the crypto exchange that if they don’t comply with the securities law, they can undergo fines up to €5 millions or 3% of their latest year’s income. BaFin can also charge them double their income in addition to these fines, so Binance can find themselves in a very difficult situation.