Tag: Binance

Binance Stock Trading Draws Attention of UK financial Regulators

Binance Stock Trading Draws Attention of UK financial Regulators

The U.K. Financial Conduct Authority (FCA) and other European regulators are concerned about whether Binance’s new stock trading feature complies with security laws.

Binance Under Scrutiny for Listing Stock Tokens
Leading crypto exchange Binance launched stock trading on Apr. 12. While cryptocurrency enthusiasts celebrated the launch of the new trading feature, regulators were not as content.

A recent report from the Financial Times reveals that the U.K.’s Financial Conduct Authority is working with the trading platform to determine whether its stock tokens comply with security rules.

The financial watchdog is reportedly examining the “governing transparency and corporate disclosures” that may apply to these stock tokens and the methods by which they can be marketed.

It also emphasized that only Binance is responsible for verifying whether these financial products represent securities.

The FCA told the Financial Times that it is “working with [Binance] to understand the product, the regulations that may apply to it and how it is marketed.” It also stated that “firms and senior management teams are responsible for determining whether their products and services fall within the remit of the FCA.”

Digital Asset AG Says It Is Compliant
Binance maintains that stock token trading was made possible thanks to a partnership with CM-Equity AG and Digital Assets AG. Both groups are regulated entities that trade items that that do not require a prospectus—something that would be required if the tokens were considered securities under EU law.

Along the same lines, Brandon Williams, Digital Asset AG’s corporate development lead, told Crypto Briefing that it always begins its efforts by interacting with regulators.

“As expected, various regulators’ interests will be piqued, as with any monumental or ‘new’ activity.” Williams explained. “The incumbent institutions of traditional finance will always prefer the status quo, but we choose innovation and efficiency.”

Williams added that stock tokens do not give the same voting rights that equity shareholders get, which means that these financial products can be compared to synthetic stocks.

“We believed our method of tokenization would have more staying power and more easily find acceptance within the various crypto communities as well as TradFi. At the end of the day, synthetics are just another derivative product,” Williams concluded.

Binance probed by CFTC over US resident ‘unregistered’ derivative trading

Binance Probed by CFTC Over US resident 'unregistered' derivative trading

Binance Holdings Ltd., the largest cryptocurrency exchange, is being investigated by the Commodity Futures Trading Commission over concerns that it allowed Americans to place wagers that violated U.S. rules, according to people familiar with the matter.

The CFTC is seeking to determine whether Binance, which isn’t registered with the agency, permitted U.S. residents to buy and sell derivatives that the regulator polices, said the people, who asked not to be identified because the probe is confidential. Binance, which has an office in Singapore but says it lacks a single corporate headquarters, hasn’t been accused of misconduct and the investigation may not lead to an enforcement action.

The scrutiny is the latest sign that market watchdogs may thwart the crypto industry’s ambitions of becoming more mainstream for U.S. investors. The CFTC considers virtual currencies like Bitcoin and Ether to be commodities and claims jurisdiction over their futures and other derivatives. That means crypto platforms face strict customer protection and oversight demands if Americans are trading on them — regardless of where exchanges are based.

Binanance co-founder Changpeng Zhao said Friday that the company closely follows American rules and has strong controls to prevent its customers from laundering funds. Speaking during an event on the social media platform Clubhouse, he declined to comment on whether the CFTC is investigating Binance.

“We’ll continue to improve our compliance,” Zhao said. “We’ll also work very actively with regulators around the world to improve the compliance standards of the industry.”
Binance said in an earlier statement Thursday that it blocks U.S. residents from its website and uses advanced technology to analyze deposits and withdrawals for signs of illicit transactions. Binance takes its compliance obligations “very seriously,” the company said. The CFTC declined to comment.

Bitcoin fell after news of the Binance investigation was reported. It was down 1.6% to $56.685.02 as of 4:17 pm New York time.

Source – Bloomberg  News

NFT

Lympo to launch LMT utility token for sports NFT collectibles on the Binance Smart Chain

Lympo to launch LMT utility token for sports NFT collectibles on the Binance Smart Chain

Animoca Brands Corporation Limited (“Animoca Brands”) is pleased to advise that its subsidiary Lympo will launch LMT, a new utility token to empower Lympo’s ecosystem of sports-related non-fungible tokens (NFTs), including collectibles based on world-famous athletes. Lympo will launch the new token and associated NFTs on the Binance Smart Chain (BSC) to enable fast and cheap transactions for holders of LMT tokens and NFTs.

The Lympo NFT ecosystem will be developed in two stages. In the first digital collectibles stage, various NFTs of world-famous athletes, clubs, influencers, and enthusiasts will be issued according to a set plan defining the supply of various levels of NFTs ranging from more common to extra rare cards. In the second content and media development stage, various activities will be launched including games using LMT as the main utility token and in-game currency. These games will implement a Play-to-Earn model. Players will be able to utilize their Lympo digital sports collectible cards to create and upgrade their sports hero characters, and then form teams, play against other players, and win tournaments, earning rewards with real-world value. More detailed information on the ecosystem and the LMT token will be provided in the upcoming light paper.

The new LMT token will give its holders access to NFTs in various staking pools and will be offered starting Friday, 19 March 2021. The only way to obtain LMT tokens during the offering is to exchange them for the existing LYM tokens. The LMT/LYM token exchange will take place at a predefined rate to be announced soon.

At the later stage, the LMT token will become the currency of the sports-related NFT ecosystem giving access to various media and content activities to its holders. Initially launching on Ethereum, this NFT ecosystem will be later bridged to the Binance Smart Chain.

Binance Smart Chain, enables the creation of smart contracts for tokens while being compatible with the Ethereum blockchain. It promises cheap transactions as low as 1 cent and a high-performance network capable of producing a block every 3 seconds. For NFT and LMT token holders, this means that minting, transferring and trading NFTs will be much cheaper and faster than the usual options available.

About Lympo

Lympo is building a sports NFTs ecosystem including NFTs with IP rights of world-famous athletes and clubs. The ecosystem will also include custom sports characters created by various artists and sports influencers. Lympo was launched in 2018 together with its token LYM, traded on various exchanges as a token to incentivise healthy lifestyle. Learn more at www.lympo.com or get updates on Twitter or Telegram.

Source – cryptonews