Crypto exchange, Binance has attracted scrutiny from European regulators over compliance with security rules, according to Finance Times. The move follows the exchange’s launch of stock tokens trading.
Binance initiative, which started last week, allows users outside the U.S, China, and Turkey to “trade equity shares through crypto coins.”
Binance CEO Changpeng Zhao expects the stock tokens to allow transferability and reduce costs to accessibility without infringing on compliance and security.
European regulators want to determine if the tokens comply with rules on transparency and corporate disclosures.
Binance says the stock tokens are a CM-Equity product that complies with the EU’s Mifid 11 Markets rules and BaFin’s banking regulations.
Binance is the world’s biggest crypto exchange by volume and has about $47 billion worth of coins trading on the platform.
