Binance US removes AMP cryptocurrency due to SEC

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The US version of the Binance website has announced that it will withdraw the AMP token from their platform’s offering after the SEC position changes (Securities and Exchange Commission), which now considers the latter a security type asset.

Recall that the SEC represents the authority of the financial markets in the United States and his job is to control the financial markets, but also to control liquidity and impose sanctions in the event of non-compliance with the rules established by it. These rules are designed to protect savers and investors from potential abuses such as insider trading.

Moreover, the term “securities” means a security in French and usually corresponds to a financial asset, However, the precise definition varies widely from jurisdiction to jurisdiction.

In a blog post published on Monday, August 1, the US version of Binance announced:

“We operate in a rapidly changing industry and our listing and cancellation processes are designed to reflect changes in the market and regulations. We are taking this action now, pending further information on token classification. “

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Additionally, the exchange site reported that this retraction was carried out in the context of “excessive caution” starting Monday, August 15, exactly two weeks after the blog article was published.

The move follows last week’s SEC report detailing the SEC’s investigation of Coinbase. the largest cryptocurrency exchange in the US as it would allow US citizens to trade digital assets that needed to be registered as “collateral”.

Last week, SEC Chairman Gary Gensler announced this. Cryptocurrency exchanges should be regulated in the same way as traditional exchanges. Gary Gensler further notes:

“There is no reason to treat the cryptocurrency market any differently than the traditional capital market, just because a different technology is used. Otherwise, there is a risk that the 90-year-old securities law will be undermined. “

The commission reported that Coinbase listed 9 cryptocurrencies that were actually unregistered “stocks”. In response, the post published on Binance’s US blog continues:

“Of these nine tokens, only Amp (AMP) is listed on the Binance.US platform.”

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Previously, the SEC indicted a former Coinbase employee, finding him guilty of violating the company’s insider trading rules. According to the SEC’s analysis, in fact, the nine tokens involved in this case contained the characteristics and definitions of a “security”.

AMP has the specificity of being a so-called “collateral token”, an asset used specifically to mitigate risk when lending to other cryptocurrency tokens. The mechanism is identical to that of traditional finance.

Following the SEC’s decision, the AMP token has lost more than 9% of its value in the past 24 hours. and is currently trading at a weekly low of $ 0.008089, according to data from CoinMarketCap.

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