Binance announced today that it will remove AMP from its US platform on August 15, pending regulatory authorities to clarify the token’s classification.
AMP and eight other tokens were deemed securities by the Securities and Exchange Commission in a recent court filing. Binance which has recently made efforts to comply with regulators after widespread criticism for previously being too lax with anti-money laundering and know-your-customer requirements.
Awaiting regulatory clarity
The first crypto exchange announced on its blog its intention to withdraw Flexa’s AMP token on August 15 from its US platform. The move came after the Securities and Exchange Commission (SEC) named AMP as collateral in a fraud case involving a former Coinbase employee.
Binance said that while AMP previously passed the risk assessment process the exchange uses to decide whether to list a token, the recent SEC filing causes the company to delist the token.”out of an abundance of caution.Binance has indicated that it will wait for further regulatory clarity before re-listing the token.
Interestingly, the exchange hinted that AMP would only be delisted on its Binance.US platform, meaning that Binance customers from other parts of the world will likely still have access to trading services. of AMP. AMP depots will be closed on August 15.
The SEC designated AMP and eight other tokens as securities in a ruling on July 21 before announcing five days later that it was investigating Coinbase for listing securities. SEC Chairman Gary Gensler said last week that he saw no significant differences between crypto exchanges and securities exchanges, and that the two should be regulated similarly.
Despite the recent market downturn, Binance processes over $17 billion in daily trading volume, and its US arm, Binance.US, handles over $400 million. Binance has been criticized in the past by regulators for its lax compliance with anti-money laundering rules. However, the exchange has recently made efforts to strengthen its requirements.