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, BanFin warns that Binance could face significant fines, Forex-News, Forex-News
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BanFin warns that Binance could face significant fines

5
, BanFin warns that Binance could face significant fines, Forex-News, Forex-News


, BanFin warns that Binance could face significant fines, Forex-News, Forex-News

In the middle of this week the Federal Financial Supervisory Authority (BaFin) warned crypto exchange Binance that it could face serious fines.

What’s going on? Binance in trouble?

Recall that Binance recently launched fractional share tokens for Apple, MicroStrategy, and Microsoft on April 26. These are in addition to the tokens for Coinbase and Tesla that were launched earlier in the month.

As we previously reported, the Financial Times reported that regulators would be carefully scrutinizing whether Binance would have violated securities laws with its share token offering.

At the time, it was explained that in case the share tokens are transferable, negotiable, provide dividends and are settled in cash, then they represent securities. In that case, the crypto exchange was obliged to publish a prospectus.

However, according to FT, CM-Equity explained that in the case of Binance a prospectus was unnecessary, since the tokens are not transferable and, in addition, they are settled in Binance’s BUSD stablecoin.

BanFin warns that fines may be yet to come

Therefore, with this precedent in mind, this week BanFin warned that Binance could face heavy penalties for launching stock tokens without an investment prospectus attached.

Basically BanFin alleges that without an investment prospectus, Binance is violating European Union securities law and could result in Binance facing a fine of five million euros; or 3% of annual income.

In this way, according to Bloomberg, Jessica Jung, a Binance spokesperson, assured that the firm takes its obligations very seriously. Therefore, he assured that Binance will work with the “Regulators to address any questions they may have.”

But, in addition, they are not the only regulators who are watching Binance carefully. As previously reported, the CFTC is investigating the crypto exchange for regulatory concerns.

Binance will certainly have to start working more closely with regulators. If it doesn’t seem like you will have to face large fines. We want to know your opinion! Do you think Binance has violated any laws?



, BanFin warns that Binance could face significant fines, Forex-News, Forex-News

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, BanFin warns that Binance could face significant fines, Forex-News, Forex-News

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