Binance US has announced that it will remove the AMP token after it was deemed a security by the US Securities and Exchange Commission (SEC). Binance US said the decision to delist the token resulted from an “abundance of caution” in enforcement by federal regulators.
Binance US will remove the AMP token
On Monday, Binance US released a blog post saying he would stop deposits for the AMP token and eliminate the AMP/USD trading pair on August 15th. The move follows a lawsuit from the SEC regarding the token.
In the blog post, Binance US said that in some cases deleting an asset is the best way to protect the community from risk. He added that with the dynamic nature of the cryptocurrency industry, the listing and delisting process from the exchange depends on changing market and regulatory frameworks.
Your capital is in danger.
Binance US said AMP was the only one listed on the platform out of the nine tokens mentioned in the SEC complaint. The exchange also noted that Amp’s trading may resume in the future.
The AMP token is down 8% in the last 24 hours. At the time of writing, the token was trading at $0.0082. The decline stems from Binance’s delisting and concerns over the future of the token.
SEC Says Nine Cryptocurrencies Are Securities
The SEC filed a complaint against a former product manager at Coinbase and two other individuals in July. The regulator declared AMP, along with eight other cryptocurrencies, to be “crypto asset securities” within the commission’s regulatory threshold.
In the complaint, the SEC said a digital token is a security of crypto asset if it meets the definition of a security of an investment contract under securities law. Crypto asset securities involve an initial investment of money in a single company with an expectation of profits being made through the efforts of others.
If the SEC chooses to pursue enforcement action against the nine cryptocurrencies classified as securities, other exchanges that have listed the token could delist it and avoid regulatory scrutiny.
Caroline Pham, commissioner of the US Commodity Futures Trading Commission, responded to the SEC case, saying the complaints could have a broader scope and highlight the need for regulators to collaborate and regulate the crypto space.
Read more:
Battle Infinity – New Crypto Presale
- Presale until October 2022 – 16500 BNB Hard Cap
- First Fantasy Sports metaverse game
- Play to Earn Utility – IBAT Token
- Powered by Unreal Engine
- CoinSniper Verified, Strong Proof Verified
- Battleinfinity.io roadmap and whitepaper