The US subsidiary of the world’s leading cryptocurrency exchange – Binance US – has revealed that it will no longer support the AMP token (AMP) on its platform. The decision comes as a result of a recent insider-trading case by the US Securities and Exchange Commission, which identified the asset as a security.
The financial regulator designated a total of nine tokens that are classified as such. However, AMP is the only one that provides access to Binance US.
Follow the rules
In a recent announcement, the trading site said it is committed to “transparency and consumer education” and supports regulatory requests issued by regulators. The company’s listing process includes a Digital Asset Risk Assessment Framework – a feature that assesses whether all tokens are listed in accordance with required legislation requirements.
Despite its due diligence process, Binance operates as a flexible entity ready to meet the obligations of the US SEC. Last week, the agency filed insider trading fraud charges against former Coinbase manager – Ishaan Wahi. Additionally, the regulator identified nine tokens listed as securities by the exchange.
Binance US responded quickly and vowed to remove the only coin it supports from that club – AMP. Effective August 15, users will no longer be able to buy or sell it. The move is not final as the firm has revealed that it may bring back the token “until more clarity exists” around its classification.
The removal from the list has adversely affected the price of the AMP. Currently, it is trading at $0.008189, which is 10% lower than yesterday’s data. The token has a market capitalization of over $345 million (according to data from CoinMarketCap).
Binance and Regulators
The trading site faced several issues with global watchdogs last year. In June 2021, the UK’s Financial Conduct Authority (FCA) issued a warning to Binance that it may not operate in the country as it was at that time:
“Due to the enforcement of requirements by the FCA, Binance Markets Ltd. is currently not permitted to carry out any regulated activities without the prior written consent of the FCA. Any other entity in the Binance Group may have regulated activity in the UK There is no UK authorization, registration or license of any kind.”
Two months later, the company settled its problems with the agency, complying with “all aspects of its requirements”.
Apart from the UK, Binance is grappling with issues in Italy, Germany, the Netherlands and South Africa. Because of these constraints, CEO Changpeng Zhao assured that the organization will follow through with its decentralization principles:
“When we first started, we wanted to adopt decentralized principles, no headquarters, work around the world, no borders. It is very clear now to run a centralized exchange, you have to have a centralized, legal entity behind it. Structure is needed.”
The firm also started expanding its global operations in various locations. In the past few months, France, Italy and Germany have given their approval to offer crypto products and services to residents of these countries.
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