World Federation of Exchanges: "Need for Stronger Regulations on Tokenized Stocks…Concerns Over Investor Risks"
JH Kim
Summary
- The World Federation of Exchanges (WFE) announced that it has requested major U.S. and European regulatory bodies to strengthen regulations on tokenized stocks.
- The WFE stated that tokenized stocks might not be treated the same as actual stocks.
- It expressed concerns that this could expose investors to risks.
According to Reuters on the 25th (local time), the World Federation of Exchanges (WFE) sent a letter to major regulatory bodies in the U.S. and Europe requesting stronger regulations on tokenized stocks. The letter was delivered to the U.S. Securities and Exchange Commission (SEC), European Securities and Markets Authority (ESMA), and International Organization of Securities Commissions (IOSCO).
The WFE pointed out, "There is a growing number of brokers and virtual asset (cryptocurrency) exchanges that are selling or preparing to sell tokenized stocks," adding, "These products are treated as if they were stocks, but in reality, they are not, which could expose investors to risks."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
