Binance.US to delist AMP token due to the SEC’s decision

According to the regulator’s decree, the asset is equated with securities

02.08.2022 - 13:05

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What’s new? The US arm of cryptocurrency exchange Binance will delist the Amp token (AMP) because the US Securities and Exchange Commission (SEC) has equated it with securities. AMP deposits will be suspended on August 16 at 02:00 UTC, and the AMP/USD trading pair will be removed at 04:00 UTC. According to the blog post, Binance.US could return the token if the SEC changes its decision.

Binance’s blog post

What is known about the asset? Amp is an ERC-20 standard token that acts as collateral for the Flexa digital payments platform. As of August 2, 12:55 UTC, the asset is trading at $0,00817, down by 8,94% in 24 hours.

How did events develop? Earlier, the SEC launched an investigation into the first criminal case of insider trading in cryptocurrency in the United States. The defendants are a former Coinbase employee and two of his associates. During the proceedings, the regulator named nine tokens that are securities, including AMP on that list. Of the entire list, only this asset was listed on the Binance.US platform. It is noted that the decision to delist it was made “out of an abundance of caution.”

Binance representatives noted:

“For any digital asset that potentially no longer meets these standards, we conduct a more in-depth review and assess whether to delist it. We believe that, in some circumstances, delisting an asset best protects our community from undue risk.”

In June, the SEC launched an investigation into Binance and its native token BNB. The regulator intends to find out whether the platform violated the rules for the sale of securities in 2017 during its initial public offering (ICO). The regulator also initiated an audit of Binance.US, an American affiliate of the exchange, on the subject of whether its activities are correctly separated from the global company.

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