Tesla Tokens From Crypto Exchange Binance Draw BaFin Scrutiny

A push by Binance, the world’s biggest cryptocurrency exchange, to offer tokens tied to the performance of popular U.S. stocks is drawing the attention of Germany’s financial regulator.

Binance may have violated securities rules when it issued tokenized shares of Tesla Inc., MicroStrategy Inc. and Coinbase Global Inc., BaFin said Wednesday. The exchange doesn’t appear to have filed a prospectus before offering the assets, according to a statement on the watchdog’s website.

The synthetic shares allow investors around the world to reap the economic gains of a company’s stock performance and dividends, according to Binance. Investors in the tokens, which ...