Binance's 'stock tokens' may have violated securities rules: BaFin

Germany's financial regulator BaFin said cryptocurrency exchange Binance may have violated securities rules when it issued tokenised shares of US stocks like Tesla and Coinbase by failing to issue a prospectus. The 'stock tokens', backed by actual stock of companies, are denominated in Binance's own cryptocurrency. Investors receive returns on the underlying shares, including potential dividends.