Month: May 2021



Binance has officially launched first of its kind, zero-commission tradable stock tokens which are denominated and collateralized in BUSD (Binance US dollar)  regulated stable coin pegged to the US dollar and issued by Paxos Trust Company. Binance US dollar is used to calculate returns quicker and easier into real money. These tradable stock tokens are fully supported by a depository portfolio of elementary securities that represent the omitted tokens.

TESLA is the first listed Binance stock token which was scheduled to open on 12th April 2021, wherein the Binance website will be the official platform to trade fractional Tesla stocks. Binance will be introducing more stock tokens and features to meet the current market demand.

Stock tokens, unlike traditional tokens, can be fragmented into small and much affordable parts which basically mean more people would be benefitted from capital returns on the shares. Binance –a cryptocurrency exchange has launched these marketable stock tokens so that a larger section of the public can earn capital returns on equities and incredible dividends without having to buy full and traditional shares. So a user is eligible to buy 1 percent of a share represented by a digital token.

“Each digital token represents one share of equity stock and is fully backed by a depository portfolio of underlying securities that represents the outstanding tokens. Users will be able to trade fractional tokens.” Stated by Binance

Residents of Mainland China, turkey, the United States and other restricted administrations are not allowed to trade Binance stock tokens. Any interested trader must first pass the two levels of KYC (know-your-customer) including identification and face verification to be eligible to trade these stock tokens. For German users, a 3 level KYC (know your customer) verification is needed which includes address proof, advanced identity checks, risk assessment and suitability questionnaire. Binance is currently working with CM-Equity AG which is a licensed investment firm in Germany and Swiss-based Digital Assets AG, an asset tokenization platform.

Binance CEO Changpeng Zhao says that “digital stock tokens will provide a bridge between traditional and crypto markets and broaden access to equity markets, resulting in a more inclusive financial future.”

According to prnewswire, Binance stock token’s quarter one of 2021 has seen incredible growths with a 260 percent increase in the traded volume and a 346 percent growth in users. Besides the digital token, the Binance coin, also known as, BNB has been picked up by more than 900 percent as of this year.

Stock tokens are classic for the users who look onto diversifying their investment anthology beyond cryptocurrencies, more into traditional financial markets. People who don’t have enough funds to acquire a stockbroker or find it much difficult to trade stocks can opt for the option of trading stock tokens instead, which may help them get more experience and exposure into traditional money markets. Buying of stock tokens is compensation for the fully paid-up shares which are non-affordable to a few of the enthusiast investors as of now.


Terrorists Still Raise Money Through Crypto, But The Impact Is Limited

The role of cryptocurrency in Terrorism would be minuscule. This is not a way that is embraced by people to finance for terrorism. In this digital world, there are a lot of frauds happening, including money laundering, terrorist financing and breach of data and so on. The United States Treasury Secretary, Janet Yellen stated that cryptocurrencies is considered to be a tool to fund for terrorism. There is a key turn that is taken to fight against terrorism and this has raised many questions. The main question is how dangerous is it if the crypto is in the hands of terrorists to the society as well as the government and the other question that is on the rise is how much risk it poses to the cryptocurrency and block chain industries.

The evidences that are submitted in the recent times proven that the role of crypto currency in the increase of terrorism would be very minute. The cryptocurrency was being used in many of the terrorist financial activities. However, this was not the primary way to receive funds to the terrorist groups. This was stated by the director of Jeanette and Eli Reinhard Program on Counterterrorism and intelligence. Gina Pieters, who is working as the assistant professor in the Department of Economics in the University of Chicago stated that the cryptocurrency can be a tool. However, Yellen chose to say the words carefully. It was stated that this is not a major tool, but is growing. With the growth of cryptocurrency, it will be used in many of the criminal activities.

Dave Jevans, who is the CEO of the Cipher Trace, expressed few of the uneasiness about the treasury secretary words. If some of the great leaders would consider cryptocurrency to be associated with many illegitimate activities, then the regulators would impose stringent rules on the transactions that are carried out through cryptocurrency. By banning blanket cryptocurrency, it would prevent mass adoption and innovation in this arena. The issue must be raised and bring it to the notice of the people. The misuse of this currency would be considered as a geopolitical issue with many trying to avoid the sanctions imposed like in Iran, Russian and Venezuela. The help that is done to the terrorist groups through this cryptocurrency would be worrisome. Though, the financing through cryptocurrency is happening in small amounts and it is traced that out of 37.35 bitcoins, a mere of around 0.00324% is spent on the illegitimate activity. The US has seized the cryptocurrency accounts of three of the terrorist groups in the Middle East. It is the largest seizure of cryptocurrency accounts so far.

There are many Jihadi groups, which are using cryptocurrency for years. The MEMRI observed that there are a few groups who are discussing the usage of cryptocurrencies. The news related to Jihadis and cryptocurrency has led companies to shut the accounts. However, not all the cryptocurrency would address the financial needs of terrorists. However, the cryptocurrencies like bitcoins have improved usability and there is a little evidence gathered and found that there are a few terrorist groups who would use cryptocurrencies. It is essential for these groups to get money without letting the government know about it. The cryptocurrency is found to be the best way to move funds without physical transportation and much risk.