Binance’s American subsidiary has confirmed that it will delist the Amp (AMP) token on its platform following the United States Securities and Exchange Commission’s (SEC) recent recommendations. The SEC identified the asset as a security and Binance US will no longer support the token on it’s platform. The token is one out of nine the SEC listed as securities and the only one that Binance US provides access to on its platform.
Binance recently made an announcement reiterating that it is committed to any transparency and consumer education principles while also supporting any regulatory requests issued by the Federal regulators. Binance’s listing process follows a Digital Asset Risk Assessment Framework. This framework investigates whether any tokens are properly listed according to statutory law requirements.
Last week, the SEC filed fraud and insider trading charges at Ishan Wahi, a former Coinbase exec. The regulator also blacklisted nine tokens which were listed by Coinbase as securities. Binance US quickly reacted by vowing to delist the only coin among the nine which it provides access to for it’s users.
From August 15th, Binance users will no longer be able to buy, sell or trade AMP token. However, this decision is not permanent as Binance has confirmed that it is subject to review if more clarity is provided on the token’s classification. The delisting announcement affected AMP’s price which currently trades at $0.008189, a 10% decline from yesterday. AMP token has a market cap of $345 million according to CoinMarketCap.
Binance had to cope with multiple problems with global financial regulators last year. In June, the U.K’s Financial Conduct Authority (FCA) issued a warning to Binance that it could not continue operations in the country the way it was until then. About two months later, Binance settled their issue with the U.K. regulators and were allowed to resume operations after complying with all requirements of the authority.
Outside the U.K., Binance also had issues with financial regulators in Italy, Germany, South Africa and the Netherlands. CEO, Changpeng Zhao (CZ) said that due to these hurdles, the company will walk away from it’s decentralization principles and become a more centralized legal entity. The firm is also expanding across the globe as France, Italy and Germany have given Binance the approval to offer crypto products and services to citizens and residents of those countries.
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