Binance US removes crypto token ‘out of an abundance of caution’ after SEC says it’s a security – regulation Bitcoin News

Binance US removes crypto token ‘out of an abundance of caution’ after SEC says it’s a security – regulation Bitcoin News
Binance US removes crypto token ‘out of an abundance of caution’ after SEC says it’s a security – regulation Bitcoin News

Binance’s US platform is delisting crypto-token amp after the Securities and Exchange Commission (SEC) declared it a security. Another crypto exchange, Coinbase, disagreed with the regulator, arguing that the token is not a security.

Binance removes AMP ‘out of an abundance of caution’

Binance’s US exchange (Binance US) is taking steps to ensure that crypto tokens that the US Securities and Exchange Commission (SEC) has declared to be securities are not listed on the platform. The SEC recently said in a lawsuit against a former Coinbase product manager that nine crypto tokens are securities. They are AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX and KROM.

Binance US explained:

In its filing, the SEC named nine digital assets that it claims are securities. Of these nine tokens, only amp (AMP) is listed on the Binance.US platform.

“Out of an abundance of caution, we have decided to remove the AMP token from Binance.US, effective August 15, 2022,” the crypto exchange announced on Monday.

Binance US detailed that on August 15, AMP deposits on the platform will be closed at 9:00 PM EDT and the AMP/USD trading pair will be removed at 11 p.m. EDT. “All trading orders will be automatically removed after trading ceases for the trading pair,” the announcement said.

The exchange clarified that it is taking this step until there is more clarity on the classification of the cryptocurrency, adding that the coin may resume trading at some point in the future.

The price of AMP fell sharply after the delisting of Binance US. At the time of writing, AMP is trading at $0.0081411, down 11% in the last 24 hours.

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Binance US is removing the crypto token
AMP price chart on Binance. Source: Binance.com

While Binance US has taken a cautious approach to crypto tokens that could be considered securities by the SEC, Nasdaq-listed cryptocurrency exchange Coinbase has chosen to fight the securities regulator.

After the lawsuit against its former employee, Coinbase published a blog post saying it does not list any securities. The exchange’s head of legal affairs, Paul Grewal, wrote: “Coinbase does not list securities on its platform. End of story.” The executive also criticized the SEC, stating, “Instead of having a dialogue with us about the seven assets on our platform, the SEC jumped straight to litigation.”

Last week, reports surfaced that the SEC could be investigating Coinbase over its crypto securities listings.

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What do you think of Binance removing AMP after SEC says it’s a security? Let us know in the comments section below.

Kevin Helms

A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of finance and cryptography.

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