Securities & Futures Commission of Hong Kong (SFC) too has raised concerns about overrunning of unregulated services of crypto trading by Binance in the region. Resultantly a warning has been issued to Binance along with other crypto trading platforms that too are rendering services without authorizations. SFC in general picked up Binance’s trading of stock tokens to raise an objection against the firm.
The ground continues to shrink underneath Binance’s feet. No matter how hard Binance is trying, but the ground is vanishing gradually. A quick response is needed at the end of Binance which has to be immediately implemented globally. Otherwise, it will be too late for Binance to come out of these difficult times and keep its business running and operational.
Adding further to its difficulties, now Binance has been warned by the regulator of Hong Kong namely the Securities & Futures Commission (SFC). Luckily so far no written warning has been handed over to Binance Hong Kong by SFC. Instead, the regulator made a statement on 17th July 2021 clarifying that there is no room for any unregulated firms in the region. The authority pointed out that any sort of unregulated activity carried out by anyone or by Binance shall not be spared. Instead, strict action will be taken against such non-licensed or unauthorized firms, said SFC.
During the statement, SFC also made mention of Binance’s “stock tokens” to allege that such trading is not allowed. SFC further clarified by suggesting that neither Binance nor its subsidiary company is authorized to offer stock tokens in Hong Kong. If such an activity is found then the regulator will regard Binance or its group and the investor as criminal. Since stock trading is a “regulated” act under the laws of Hong Kong, therefore, obtaining permission is a must.
The regulator further clarified that none of the affiliated entities of Binance nor Binance itself had ever come to it. So the authority had never issued any license to carryout out regulated activities to Binance or its affiliates. Under the law of SFC’s crypto guidelines, any trade of “stock tokens” is considered “securities”, requiring certain authorizations. If a crypto platform assumes “stock tokens” as “digital currencies”, the perception is wrong. A digital currency is of the kind such as Bitcoin, Ethereum, Dogecoin, BCH, Litecoin, etc. Any sort of tokenized form of “crypto” is not “currency” instead it is “security” under the guidelines.
SFC suggested that if Binance is willing to offer stock token trading, then it should file an application with the regulator. Upon the application, the regulator will make a decision and decide whether permission will be granted or not. If the permission is approved, then there is no restriction upon Binance or its affiliates to render stock token trading options.