Cryptocurrency exchange Binance's latest product — digital stock tokens representing fractions of equity shares like Tesla (NASDAQ:TSLA) and Coinbase — is reportedly being studied by European and British regulators over its possible non-compliance with securities laws.
A new report from the Financial Times claims that regulators are concerned the tokens may not provide sufficiently transparent corporate disclosures, specifically an investment prospectus, that would be required if the tokens were judged to be securities. Germany's Federal Financial Supervisory Authority, or BaFin, told FT reporters that while it could not comment on the case specifically: