Heavily fined in Germany for breach of European Union Laws
Germany's financial regulator, BaFin, said Binance could be heavily fined for offering security tokens without actually publishing the investor's prospectus.
Earlier this month, Binance launched its zero-commission tradable stock tokens to bridge the gap between the cryptocurrency market and Wall Street.
Prior to the launch, Binance announced that it will allow users to trade tokenized shares of Tesla and Coinbase Global with their Binance USD (BUSD).
On Monday, April 26, Binance also announced that it would offer investors exposure to other tokenized securities for companies such as Microsoft, MicroStrategy and Apple Inc.
However, on Wednesday, April 28, BaFin, Germany's financial regulator, said there is no prospect on the Binance website for Tesla, MicroStrategy and Coinbase.
The German regulator also said that Binance's action violates the European Union's securities law and could therefore be fined 5 million euros or 3% of last year's company turnover.