An offshoot of U.S. cryptocurrency exchange Binance has removed Amp (AMP) from its platform after federal regulators claimed that the Ethereum (ETH) token is an unregistered security.
in a new statementthe exchange said it will stop supporting the AMP blockchain’s native token starting August 15 out of an abundance of caution.
Binance said it took into account market and regulatory developments in its listing and delisting process, and that assets that may no longer meet its listing criteria will be subject to in-depth scrutiny and assessment.
“We believe that, in some cases, delisting assets best protects our community from undue risk.
While AMP trading may resume on the Binance.US platform at some point in the future, we are taking this step now until the categorization surrounding AMP becomes clearer. “
The decision comes after the U.S. Securities and Exchange Commission (SEC) declared AMPs to be unregistered securities.
In its complain In response to a former Coinbase employee accused of insider trading, the SEC said AMP, along with eight other digital tokens, namely Rally (RLY), DerivaDEX (DDX), XYO (XYO), Rari Governance Token (RGT), LCX (LCX), Powerledger (POWR), DFX Finance (DFX), and Kromatika (KROM), all have security-defined symbols.
“A digital token or cryptoasset is a cryptoasset security if it meets the definition of a security, which the Securities Act defines as including an “investment contract,” that is, if it constitutes a monetary investment in a common business, with A reasonable expectation of profit.
As described in more detail below, during the relevant period, Ishan provided material non-public information that Nikhil and Ramani traded in at least nine cryptoasset securities that meet this definition. “
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