The American 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 the recent trading case by the US Securities and Exchange Commission, which designated the asset as a security.
The financial regulator has named nine brands in total that are classified as such. AMP, however, is the only one that Binance US provides access to.
Adherence to the Rules
In a recent announcement, the exchange said it is committed to “transparency and consumer education” and supports regulatory requests issued by watchdogs. The company’s registration process includes a Digital Asset Risk Assessment Framework – a feature that investigates whether all tokens are listed in accordance with the necessary statutory requirements.
Despite the due diligence process, Binance US operates as a flexible entity ready to meet SEC obligations. Last week, the agency filed insider trading fraud charges against former Coinbase CEO Ishan Wahi. In addition, the regulator identified nine brands listed on the stock exchange as securities.
Binance US reacted quickly and promised to remove the only currency it supports from this club – AMP. Effective August 15th, users will no longer be able to buy or sell it. The step is not final after the company revealed that it could bring back the badge “until there is more clarity” around its classification.
The deletion negatively affected the value of AMP. It is currently trading at $0.008189, which is a 10% drop compared to yesterday’s figures. The token has a market capitalization of over $345 million (according to CoinMarketCap data).
Binance and Regulators
The trading venue had to deal with multiple issues with global guardians last year. In June 2021, the Financial Conduct Authority of the United Kingdom (FCA) issued a warning to Binance that it could not operate in the country as it was until then:
“Due to the imposition of requirements by the FCA, Binance Markets Limited is currently not permitted to undertake regulated activities without the prior written consent of the FCA. No other entity in the Binance Group has any form of authorization, registration or license in the UK to carry on a regulated activity in the UK.”
Two months later, the company settled its issues with the company, complying with “all aspects of its demands.”
In addition to the UK, Binance has experienced problems in Italy, Germany, the Netherlands and South Africa. Due to these obstacles, CEO Changpeng Zhao assured that the organization will part with its decentralization principles:
“When we started, we wanted to embrace decentralized principles, no headquarters, work around the world, no borders. It’s very clear now to run a central exchange, you need a central legal entity structure behind it.”
The company also began looking to expand its global operations to various locations. In recent months, France, Italy and Germany have given it the nod to offer crypto products and services to residents of those nations.
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