Binance removes the token after the SEC classifies it as a security

Key points to remember

  • Binance announced today that it will delist AMP on August 15 from its US platform pending regulatory clarification on the token’s classification.
  • AMP and eight other tokens were called securities by the Securities and Exchange Commission in a recent court filing.
  • Binance recently made efforts to comply with regulators after widespread criticism for previously being too lax with anti-money laundering and know-your-customer requirements.

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Binance.US is shutting down its AMP trading services after being deemed a security by the Securities and Exchange Commission in a recent filing.

Awaiting regulatory clarity

Binance removes AMP from the list.

The first crypto exchange announcement in a blog post today, its intention to remove Flexa’s AMP token on August 15 from its US platform. The decision was made after the Securities and Exchange Commission (SEC) named AMP as collateral in a fraud case involving a former Coinbase employee.

Binance said that while AMP has already passed the risk assessment process used by the exchange to decide whether to list a token, the recent SEC filing causes the company to pull the token “by caution”. Binance said it would wait for more regulatory clarity before relisting the token.

Interestingly, the exchange hinted that AMP would only be delisted from its Binance.US platform, meaning that Binance clients from elsewhere in the world will likely still have access to AMP trading services. AMP deposits will close on August 15 at 9:00 p.m. ET, and the AMP/USD trading pair will be removed two hours later.

The SEC has named AMP and eight other tokens as securities in a deposit July 21 before announcing five days later, he was investigating Coinbase for stock listing. SEC Chairman Gary Gensler declared last week that he saw no meaningful difference between crypto exchanges and stock exchanges, and that both should be regulated equally.

Binance is one of the largest crypto exchanges in the world. Despite the recent market downturn, the platform is currently processing over $17 billion in daily trading volume, and its US arm, Binance.US, over $400 million. Binance has been critical in the past by regulators in the past for its lax compliance with anti-money laundering rules and Know Your Customer. However, the exchange has recently made efforts to tighten its requirements.

Disclosure: At the time of writing this article, the author of this article owned ETH and several other cryptocurrencies.

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