European Regulators Consider Binance’s Stock Tokens As Securities
Binance stock tokens are now in the focus of the attention of the European regulators. They check whether these tokens comply with the securities laws. These tokens are equal to the company’s shares. They were launched as an answer to Coinbase’s tokenized stocks.
European regulators haven’t completely made up their mind about their status but stick to their definitions as securities. If they are transferable, can be traded on crypto exchanges and are equipped with dividends, they want Binance to publish a prospectus for them.
Binance doesn’t agree that the prospectus is necessary in this case. Their tokens are not transferable to other exchanges and don’t confirm the voting rights similar to equities; they can be only sold or bought. However, they don’t explain clearly whether these tokens are indeed securities or derivatives.