Binance US Delists Crypto Token ‘out of an Abundance of Caution’ After SEC Says It’s a Security – Regulation Bitcoin News

Binance’s U.S. platform is delisting crypto token amp after the Securities and Exchange Commission (SEC) declared it a security. Coinbase, an alternative crypto exchange, disagreed and argued that the token wasn’t a security.

Binance Delists AMP ‘out of an Abundance of Caution’

Binance’s U.S. exchange (Binance US) is taking action to ensure that crypto tokens the U.S. Securities and Exchange Commission (SEC) has declared to be securities are not listed on its platform. In a suit against an ex-Coinbase product manager, the SEC stated that nine cryptocurrency tokens were securities. These are AMP and RLY.

Binance US explained

The SEC alleged that nine digital assets are securities in its lawsuit. Only amp (AMP), one of those tokens is available on Binance.US.

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

Binance US announced that on Aug. 15 AMP deposits from its platform would be shut down at 9:00 p.m. Eastern Time (EDT) and that the AMP/USD trading pair would be removed at 11:00 p.m. Eastern Time (EDT). “All trade orders will be automatically removed after trading ceases for the trading pair,” the announcement states.

According to the exchange, it will continue this process until further clarity is gained about the classification of cryptocurrency. It also indicated that they could resume trading in the future.

The delisting announcement of Binance US caused AMP to drop sharply in price. AMP currently trades at $0.0081411, a 11% drop in 24 hours.

Binance US Delists Crypto Token 'Out of an abundance of caution' After SEC Calls It a Security – AMP Price Chart Source:

Binance US took a prudent approach to crypto tokens which could be considered securities by the SEC. Coinbase, a Nasdaq listed cryptocurrency exchange Coinbase chose to challenge the securities regulator.

Coinbase’s former employee was sued and Coinbase wrote a blog post saying that no securities are listed. The exchange’s chief legal officer, 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 directly to litigation.”

Reports last week suggested that Coinbase could be under investigation by the SEC for listing crypto securities.

In this story, tags, Coinbase. delisting tokens. sec declares securities. sec securities

What do you think about Binance delisting AMP after the SEC said it’s a security? Please leave your comments below.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. He is interested in Bitcoin security and open-source software, network effects, and the intersection of cryptography and economics.

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