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Binance's 'stock tokens' may have violated securities rules: BaFin
short by Hiral Goyal / on Thursday, 29 April, 2021
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.