Binance’s marketing of security token based on Tesla stocks raises questions about Hong Kong licence
- Marketing campaign could be deemed a regulated activity that requires a licence in Hong Kong, which Binance does not have according to SFC records
- Binance website does not mention Hong Kong among jurisdictions that bar trading in security tokens
The marketing campaign could be deemed a regulated activity that requires a licence in Hong Kong. Binance, however, does not have any such licence in the city, according to Securities and Futures Commission (SFC) records.
Moreover, a list of restricted jurisdictions – mainland China and the United States among others -that bar trading in tokens on Binance’s website does not mention Hong Kong. A spokeswoman for Binance based in South Korea said the exchange did not operate in the city, and offered no comment on any licensing.
The launch of Binance’s security tokens comes amid a rise in the popularity of cryptocurrencies, whose combined market value surpassed US$2 trillion for the first time this month. More mainstream banks, such as Morgan Stanley and DBS, have started offering clients exposure to cryptocurrency assets.
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