thecoinrise.com
Binance.US, the United States subsidiary of leading exchange Binance, has announced plans to delist the AMP token after claiming that the asset is a security.
As per the details shared in a Monday post, effective from August 15, 21:00 E.T the exchange will no longer offer the AMP for trade. The AMP/USD pair will also stop trading on its platform by 23:00 E.T of the same day.
Citing an ongoing SEC insider-trading case where the regulator branded 9 tokens as securities, the exchange has, “out of an abundance of caution” opted to stop offering the token for trade. It will resume trade of the AMP when there is clearer classification regarding the status of the digital asset.
The nine digital assets branded as securities include Flexa’s AMP, Rally’s RLY, DerivaDEX’s DDX, XY Labs’ XYO, Rari Capital’s RGT, the Liechtenstein Cryptoassets Exchange’s LCX, Power’s POWR, DFX Finance’s DFX, and Kromatika Finance’s KROM. All of these tokens are Ethereum based.
Expectedly, the price of the AMP suffered a hit after the announcement. It currently trades at $0.008177, down 9.30% at the time of this report according to CoinMarketCap.
According to Binance.US, the rapidly evolving industry calls for a responsive listing and delisting process. And as such it will stop the trade of AMP in the US although it might still be open to users from other climes.
Need for clearer regulation
Just like it did with AMP, Binance.US delisted XRP last year in response to a long drawn-out legal battle between the SEC and Ripple. Ripple is requesting a clearer regulation for the space in the lawsuit that started in December 2020. Report has it that the blockchain payments firm is making good progress in the case.
Undoubtedly, Binance.US delisting of assets after the SEC’s branding of the asset could set negative precedence for the industry. Even though there’s no actual formal crypto regulatory framework or jurisdiction over digital assets. Crypto exchanges in the US may be forced to stop trading any digital asset that the SEC calls a security.
Therefore, industry players are requesting a clearer regulatory framework for cryptocurrencies rather than SEC’s arbitrary enforcement.