Binance.US stated in a statement on Monday that the exchange always supports openness while following to federal authorities' mandates.
According to the exchange, projects trading on its platform shall continue to meet listing standards based on the legally allowed scope of the Digital Asset Risk Assessment Framework.
The US announced it will delist the AMP token “out of an excess of caution” due to probable federal regulator enforcement.
On August 15, the exchange announced that it will close Amp (AMP) deposits and delete the AMP/USD trading pair from its platform. The move followed the SEC's reference of the token in legal proceedings, according to the exchange.
The SEC designated nine crypto assets as securities last week, on July 21, and the AMP coin was one of them.
Binance.US wrote in a blog post, “We think that, in some situations, delisting an asset best protects our community from unnecessary risk.” We work in a dynamically changing industry, and our listing and delisting procedures are structured to respond to market and regulatory changes.
According to US, AMP is the sole token trading on its platform among the nine identified in the SEC's legal case. According to the regulator's ruling, the exchange added that it may restart trading of AMP on its platform in the future.
Consequences of the SEC Designating Coins as Securities
The SEC charged a former Coinbase (COIN) product manager and two others with insider trading on July 21st. The agency also mentioned nine cryptocurrencies as securities, with future plans to punish the issuers and exchanges that list the coins.
The classification of the nine cryptocurrencies as securities might have far-reaching consequences in the crypto markets. The designation indicates that the coins will be governed in the same way that stocks and bonds are. To be able to market the assets to US investors, the issuers of such tokens must also comply with the country's securities regulations.
Such designations would increase the cost and complexity of running a cryptocurrency exchange. Furthermore, exchanges would be subject to ongoing regulatory examination, which may result in penalties, fines, penalties, and, in the worst-case scenario, prosecutions if criminal authorities were involved. This may also result in the loss of future investment from investors who may stop trading due to rising compliance burdens and regulatory scrutiny.
More repercussions will follow once the SEC's findings are implemented.
In its most basic form, whether an asset is or is not a security under US law is essentially a question of how closely such a token resembles shares issued by a company raising funds.
The SEC uses a legal standard from a 1946 US Supreme Court judgment to assess this. Under that paradigm, the SEC may consider an asset to be a security if investors raise or pump in funds with the intent of profiting from the company's leadership's efforts.
The SEC filed a complaint against Ripple Labs Inc. in December 2020 for allegedly obtaining funds by selling the XRP digital coin without registering it as a securities.
The regulator stated that the company was funding its expansion by issuing XRP to investors in the hope that its value would rise. The SEC and Ripple are currently engaged in a protracted court battle.
Don't forget to download our App WikiBit for updates so you can protect yourself from hidden dangers in this risky profession. Here are the links to download:
iOS: t.ly/UUCj
Android: t.ly/cfYt
Check over 8000 tokens and over 5000 exchanges with 26 Crypto Brokers!