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

Binance’s U.S. level is delisting crypto token amp aft the Securities and Exchange Commission (SEC) declared it a security. Another crypto exchange, Coinbase, disagreed with the regulator, arguing that the token is not a security.

Binance Delists AMP ‘out of an Abundance of Caution’

Binance’s U.S. speech (Binance US) is taking enactment to guarantee that crypto tokens the U.S. Securities and Exchange Commission (SEC) has declared to beryllium securities are not listed connected its platform. The SEC precocious said successful a suit against a erstwhile Coinbase merchandise manager that nine crypto tokens are securities. They are AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX, and KROM.

Binance US explained:

In its suit, the SEC named 9 integer assets that it alleges are securities. Of those 9 tokens, lone amp (AMP) is listed connected the Binance.US platform.

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

Binance US elaborate that connected Aug. 15, AMP deposits connected its level volition beryllium closed astatine 9:00 p.m. EDT and the AMP/USD trading brace volition beryllium removed astatine 11:00 p.m. EDT. “All commercialized orders volition beryllium automatically removed aft trading ceases for the trading pair,” the announcement states.

The speech clarified that it is taking this measurement until much clarity exists astir the classification of the cryptocurrency, adding that the coin could resume trading astatine immoderate constituent successful the future.

The terms of AMP fell sharply pursuing the delisting announcement by Binance US. At the clip of writing, AMP is trading astatine $0.0081411, down 11% successful the past 24 hours.

While Binance US has taken a cautious attack to crypto tokens that whitethorn beryllium deemed securities by the SEC, the Nasdaq-listed cryptocurrency speech Coinbase has chosen to combat the securities regulator.

Following the suit against its erstwhile employee, Coinbase published a blog station stating that it does not database immoderate securities. The exchange’s main ineligible officer, Paul Grewal, wrote: “Coinbase does not database securities connected its platform. End of story.” The enforcement besides criticized the SEC, stating: “Instead of having a dialog with america astir the 7 assets connected our platform, the SEC jumped straight to litigation.”

Last week, reports surfaced that the SEC could beryllium investigating Coinbase implicit its listings of crypto securities.

What bash you deliberation astir Binance delisting AMP aft the SEC said it’s a security? Let america cognize successful the comments conception below.