Lorenzo Stroe
Independent Analyst
- Binance is reportedly under a potential investigation by European regulators for its stock token offering.
- Binance has recently started to offer trading in stock tokens to users.
- Other exchanges like FTX and Bittrex already offer the option to trade stock tokens.
Binance is reportedly under scrutiny for offering stock trading through cryptocurrencies even though other exchanges have done it before through the same platform, CM-Equity.
Binance under investigation but probably not in trouble
Binance started to offer its users the ability to trade stock tokens earlier this month through the German financial services firm, CM-Equity. The exchange started with Tesla and has recently introduced COIN, the stock of Coinbase. Changpeng Zhao, CEO of Binance commented on the official release stating:
Stock tokens demonstrate how we can democratize value transfer more seamlessly, reduce friction and costs to accessibility, without compromising on compliance or security.
According to Binance, stock tokens on the exchange do not have the same weight as normal stocks as they do not give users voting rights. Additionally, these tokens are not transferable to other customers and are only settled in BUSD, a stablecoin, which is not fiat.
It is also important to note that FTX and Bittrex Global already offer practically the same service through the same company and had no trouble. Sam Bankman-Friend, CEO of FTX, stated:
No regulators anywhere have ever reached out to investigate FTX for anything.
Binance Coin price seems unfaced despite the news
BNB is trading at $575 at the time of writing and has crossed above the 78.6% Fibonacci retracement level at $569.
BNB/USD 4-hour chart
The most significant resistance level is $595, which formed a potential double top. However, a breakout above this point can quickly drive the digital asset toward the previous all-time high of $638 and as high a $726 to the 127.2% Fibonacci level.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?