WFE Warns of Risks in Third-Party Tokenized Equities
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BTCCSquare news:
The World Federation of Exchanges (WFE) has alerted regulators, including the SEC crypto Task Force and European Securities and Market Authority, about the rising dangers of third-party tokenized equities. These tokens, often mimicking US stocks, are being offered by unregulated platforms, raising concerns over investor protection and market integrity.
Investors may lack fundamental rights such as dividends or voting, while liquidity fragmentation threatens price discovery on traditional exchanges. The WFE highlights regulatory arbitrage, custody risks, and issuer liability as critical issues requiring immediate attention.
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