American crypto exchange arm Binance has removed Amp (AMP) from its platform as federal regulators claim the Ethereum (ETH) token is an unregistered security.
In a new statementthe exchange says that, out of an abundance of caution, it will stop supporting its native blockchain token AMP effective August 15.
Binance says it considers market and regulatory developments in its listing and delisting processes and assets that potentially no longer meet listing standards to be subject to in-depth review and evaluation.
“We believe that, in some cases, delisting an asset best protects our community from undue risk.
While trading of AMP may resume at some point in the future on the Binance.US platform, we are taking this step now until there is more clarity on the classification of AMP.”
The decision comes after the US Securities and Exchange Commission (SEC) declared AMP an unlisted security.
Inside complaint against a former Coinbase employee accused of insider trading, the SEC says AMP, along with eight other digital tokens, namely Rally (RLY), DerivaDEX (DDX), XYO (XYO), Rari Governance Token (RGT), LCX (LCX) , Powerledger (POWR), DFX Finance (DFX) and Kromatika (KROM), all have the defining characteristics of the title.
“A digital token or crypto asset is a crypto asset security if it meets the definition of a security, which the Securities Act defines as including an “investment contract,” that is, if it is an investment of money, in a joint venture, with reasonable expectations profits derived from the efforts of others.
As described in more detail below, during the relevant period, Ishan provided material, non-public information and Nikhil and Ramani traded at least nine securities of cryptoassets that meet this definition.”
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