A significant cryptocurrency exchange Binance announced on Friday that users would no longer be able to purchase digital tokens tied to equities, a day after Italian regulators joined a slew of other financial watchdogs in cracking down on the site.
"Effective now, stock tokens are no longer accessible for purchase on Binance," the exchange announced on its website, adding that all support would be discontinued in October.
The action follows increased monitoring of the exchange by regulators ranging from the United States to Europe and Asia.
The Italian market regulator announced on Thursday that Binance, one of the world's largest platforms, was not authorized to provide financial services and operations in Italy, even though its main website, which gave information on derivatives and stock tokens in Italian.
Stock tokens are digital representations of stocks that are linked to the value of the underlying share. Binance was selling stock tokens for firms like Apple, Microsoft, and Tesla.
The German regulator, BaFin, warned Binance in April that it faced punishment for selling stock tokens without first releasing an investor prospectus.
Binance customers who own stock tokens can sell or retain them for the next 90 days, according to the exchange, but they will no longer be allowed to sell or liquidate holdings after October 14.
Binance said that it will move its commercial focus to other product offerings. A request for more comment was not immediately responded to by a representative.
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