AMP token delisted from cryptocurrency exchange Binance

AMP token to not be listed until further notice by SEC!

According to the reports, it comes to notice that AMP tokens have been delisted by Binance US. Binance is one of the largest cryptocurrency exchanges in the entire world, which in a way has revolutionized the entire industry. According to the cryptocurrency exchange, the token AMP will not be listed for trading until further notice by SEC.

Why did SEC list AMP as a security and why did Binance delist the token? Let’s dive deeper to find out.

Recently, we reported a news that talked about how the crypto regulator had gone ahead to chare Coinbase’s employees for facilitating insider trading. Last month, SEC went on to announce that Coinbase’s product manager Ishan Wahi, had committed insider trading in compliance with his brother Nikhil Wahi and his friend. According to the allegations, the criminals had brought around 25 cryptocurrencies, out of which 9 of them were securities.

As Binance dug deeper in to the case, it found out what were the nine tokens that were recorded as securities. In its investigation, the crypto exchange also came to know that AMP was the only token that was listed with the company. Binance went on to say that AMP is predicted to be listed in the exchange in future but SEC has to grant it the status of a cryptocurrency.

SEC’s ambiguous stance about cryptocurrency.

Factually, SEC has an ambiguous stance about cryptocurrency. SEC feels that other than Bitcoin, which also happens to be the world’s most capitalized cryptocurrency, none of the other cryptocurrencies can actually qualify under the category of cryptocurrency. The Chairman of SEC went on to make the statement that only bitcoin can be treated and regulated as a commodity and other currencies are merely securities.

The reasoning that he followed with his opinion was that, if an investor is earning financial benefit by trading in a token and if the investor is anticipating that he will get interest, then that actually is nothing but a security.

Binance’s stance in the market.

While many cryptocurrency exchanges have gone to challenge SEC’s mode of action, contrastingly, Binance has played it safe in terms of facing SEC. The best example of Binance playing it safe is delisting AMP as soon as SEC listed it as a security. Even Coinbase went on to question SEC’s stance about cryptocurrency, but binance has remained silent about it.