A photo of the Binance logo.
A photo of the Binance logo.

As regulators from multiple countries continue to dig deeper, Cryptocurrency exchange Binance is taking steps to reduce the pressure it faces, by no longer selling digital tokens and stocks in companies like Apple, Tesla and Coinbase.

In a statement on their website, the exchange announces that the tokens would no longer be available for purchase “effective immediately,” and all support for them would cease beginning on Oct. 14. The decision came as financial watchdogs abroad began to warn investors that the company had likely violated securities rules.

According to Reuters, several countries have started to raise red flags about the company, with Germany warning investors back in April. Other countries have since followed suit. Lithuania warned Binance about its “unlicensed investment service,” while Italy has said they were not authorized to provide investment services in the country.

Britain's Financial Conduct Authority (FCA) and Hong Kong’s Securities and Future’s Commission (SFC) have also issued warnings and started investigations regarding whether the company was licensed to carry out regulated activities.

“Any person who contravenes in a relevant provision may be prosecuted, and if convicted, subject to criminal sanctions,” the SFC said in a statement.

Binance, which allowed users to buy a fraction of companies’ shares without paying commission fees and had prices settled in their own stablecoin, Binance USD, has said that they are simply re-evaluating their products and services amid the investigations.

“As the crypto ecosystem evolves, and as Binance grows as a company, we are continually evaluating our products and working with our partners to meet our users’ needs,” a spokesperson told CNBC.

“We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion. We don't comment on specific matters or inquiries,” they added.