Hong Kong, Lithuania Issue Binance Warnings

Hong Kong's Securities and Futures Commission said no entity in the Binance Group is registered to conduct any regulated activity.

By Jamie Crawley

Jul 16, 2021 at 10:38 a.m. UTC

Updated Sep 14, 2021 at 1:26 p.m. UTC

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

Jamie Crawley

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

Hong Kong and Lithuania became the latest places to warn crypto exchange Binance about its operations. Hong Kong's markets regulator said Binance is not registered to operate in its jurisdiction, while the Bank of Lithuania said it warned the company about "its unlicensed investment services."

Hong Kong's Securities and Futures Commission (SFC) said Friday that no entity in the Binance Group is registered to conduct any regulated activity in Hong Kong.
The SFC raised concerns that Binance's stock tokens could be offered to Hong Kong investors.
"Where the stock tokens are 'securities,' marketing and/or distributing such tokens – whether in Hong Kong or targeting Hong Kong investors – constitute a 'regulated activity' and require a license from the SFC unless an applicable exemption applies," the regulator said.
Earlier today, Binance announced that it is discontinuing its stock token service, ending the sale of the tokens immediately and ceasing support for those already purchased in October.
Lithuania's central bank also issued a warning about Binance's "unlicensed investment services."
The announcements by the SFC and the Bank of Lithuania follow a string of similar warnings from regulatory bodies elsewhere, including the U.K., Japan and the Canadian province of Ontario.
The U.K. Financial Conduct Authority's ruling was followed by several major banks in Britain, including Barclays and Santander blocking their customers from using their cards on Binance's platform.

UPDATE (July 16, 10:57 UTC): Adds details from SFC statement and earlier stock-token announcement from Binance.

UPDATE(July 16, 13:34 UTC): Adds Lithuania.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

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.

Jamie Crawley

Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

Jamie Crawley