Hong Kong And Lithuania Follow Regulatory Witch Hunt On Binance
Hong Kong and Lithuania have joined the global regulatory witch hunt on Binance Exchange. Hong Kong’s markets regulator (SFC) said Binance is not registered to operate in its jurisdiction, while the Lithuania’s central bank said it warned the company about “its unlicensed investment services.”
Hong Kong’s Securities and Futures Commission (SFC) wrote on Friday that none of Binance Group entities is registered to conduct any regulated activity in Hong Kong.
The SFC raised concerns regarding Binance’s stock tokens to be offered to Hong Kong investors.
Hong Kong SFC warned in a statement:
“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.”
Binance announced earlier today that it will not continuing its stock token service, and that the sale of the tokens ends immediately and there is no more support for those already purchased in October.
Lithuania’s central bank, Bank of Lithuania, also warned about Binance’s “unlicensed investment services.”
The announcements by the SFC and the Bank of Lithuania follow a string of similar warnings and even legal action from regulatory bodies elsewhere, including the U.K., Cayman Islands, Italy, Japan, Thailand, Singapore and the Canadian province of Ontario.
The U.K. Financial Conduct Authority’s ruling was followed by several major banks in Britain, such as Santander, Barclays, Monza, TSB, Nat West, Metro Bank, HSBC, and Lloyds, from blocking their customers from payments to Binance.
