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The German securities regulator has denied a request from cryptocurrency exchange Binance to delete notices about its stock tokens, which it claims may violate German securities laws.

The Federal Financial Supervisory Authority, or BaFin, recently published a notice on its website condemning Binance for its stock tokens. The regulator claims should have come with a published prospectus after prior approval.

Binance has until this week to withdraw its tokens from sale in Germany as part of a compliance action led by BaFin against the exchange or face a fine. The maximum fine under local laws maybe $6 million, or 3% of annual sales. Binance may also be held responsible for any losses suffered by investors in its stock tokens, according to the regulator.

According to the Financial Times, Binance is currently pressuring the regulator to change its mind, claiming that BaFin has profoundly misunderstood the essence of its offering, rendering the alerts ineffective.

However, the regulator appears to be standing firm, for the time being, implying that failure to print investment prospectus documents is a criminal offense.

Stock tokens, according to Binance, are not shares in and of themselves since they are not transferable to other exchanges or customers and are transacted through a third party.

However, for BaFin, simply having the tokens available for trading on the exchange was…sufficient to make the tokens represent a security or a financial investment commodity.

Although declining to comment on the details of the case, Binance stated that it is still committed to adhering to local regulator requirements wherever it operates.

The developments mark the latest squabble between Binance and securities regulators over the tokens, with the Financial Conduct Authority of the United Kingdom among those expected to take similar action against the company.

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