Binance.US responds to regulatory changes with proactive delisting and cautious approach, while awaiting clarity on AMP token classification.
In Miami, Florida on April 7th, the Binance US logo was observed at its booth during the Bitcoin 2022 Conference held at the Miami Beach Convention Center. Binance.US, the American division of the largest global cryptocurrency exchange, has made the decision to remove AMP Token from its platform. This move comes after the US Securities and Exchange Commission categorized AMP Token as one of nine cryptocurrencies lacking registration as securities.
Binance, as the initial prominent cryptocurrency exchange, took the lead in suspending the trading of an asset mentioned by the US Securities and Exchange Commission (SEC) within the United States. However, it is important to note that Binance’s worldwide trading platform, which includes AMP and Powerledger among its offerings, has also chosen not to list these tokens.
In a recent Monday blog post, Binance.US expressed its commitment to operating within a rapidly evolving industry by carefully crafting procedures for listing and delisting to accommodate changing market dynamics. The platform demonstrated its proactive approach by swiftly taking action and removing the specific asset from its listings starting August 15th. This decision stems from a strong emphasis on exercising caution and upholding compliance standards.
Additionally, Binance.US highlighted the suspension of trading for the mentioned asset, signaling that trading will only resume once there is a more conclusive clarification regarding the classification of AMPs, ensuring regulatory compliance remains a top priority.
Binance Silent As SEC Recognizes Cryptocurrencies As Securities In Insider Trading Case
Binance did not provide a response when requested for comment by Forbes. The US Securities and Exchange Commission (SEC) acknowledged cryptocurrencies as securities during an investigation involving a former employee of Binance’s competitor, Coinbase, on charges of insider trading. The civil lawsuit also implicated the employee’s friend and brother, while the Justice Department filed a related criminal lawsuit against all three individuals.
Among the cryptocurrencies mentioned by the SEC, there are several others, namely Rally RLY (RLY), Derivado (DDX), XYO (XYO), Rari (RGT GT), LCX (LCX), DFX Finance (DFX), and Chromatica (KROM) tokens. However, out of all the coins listed, Amp is the sole cryptocurrency available on the Binance.US platform.
According to a recent report by Forbes, it was revealed that the repercussions of the Coinbase lawsuit are expected to impact other exchanges. This may lead them to delist assets categorized as securities by the SEC, but not token offerings. However, major cryptocurrency marketplaces have not taken any action on this matter thus far. Kraken, a San Francisco-based exchange that includes Powerledger in its listings, emphasized in a statement to Forbes that it prioritizes its responsibility as a provider of a secure and compliant global trading platform.
We strictly adhere to a policy of not listing securities. Before adding any asset to our platform, our teams diligently carry out comprehensive risk and security assessments, which involve an extensive legal and compliance process.
In line with Caroline Pham, a member of the Commodities Futures Trading Commission, who referred to the SEC case as an illustration of “regulation by enforcement,” Paul Grewal, the chief legal officer of Coinbase, responded to the allegations in a blog post last month.
Grewal stated, “We concur with Commissioner Pham and, respectfully, disagree entirely with the securities fraud allegations and the merits of the allegations themselves.”
He further emphasized, “Coinbase unequivocally does not list securities on its platform. This is an absolute statement.”