Crypto exchange Binance said it will no longer support tokens linked to stocks barely three months after it made them available on its trading platform.
Binance announced Friday that stock tokens are unavailable for purchase on its website effective immediately and support for such tokens will end on Oct. 14, with all positions closed the following day.
The embattled exchange said the move will allow it to focus on other products.
The most recent warning came from Hong Kong, whose markets regulator announced today that Binance is not registered to operate in its jurisdiction.
CEO Changpeng "CZ" Zhao addressed Binance's woes in an open letter July 7, calling compliance a "journey" and spoke of the need for "clearer regulatory frameworks" in response to the wider adoption of crypto.
Binance users in the European Economic Area and Switzerland who have bought stock tokens can migrate them to a new platform being built by CM-Equity AG, the German investment firm Binance worked with in the stock token venture.
The new platform is expected to open several weeks before the October deadline.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.