The United States arm of crypto exchange Binance has removed the Amp (AMP) token from its platform, owing to claims made by federal regulators that the Ethereum (ETH) token is an unregistered security. The SEC alleges that EtherDelta operated as an unregistered exchange and broker-dealer for digital assets, in violation of the federal securities laws.
The exchange announced in a statement today that it is ending support for all AMP-supported tokens on August 15th, citing concerns about compliance with US securities regulations.
The Binance exchange says it considers market and regulatory developments in its listing and delisting processes, as well as assets that potentially no longer meet its listing standards.
“We believe that, in some circumstances, delisting an asset best protects our community from undue risk. While trading of AMP may resume at some point in the future on the Binance.US platform, we are taking this step now until more clarity exists around the classification of AMP.”
Following the SEC’s declaration that AMP is an unregistered security, the company announced a series of initiatives to address some of its shortcomings.
“A digital token or crypto asset is a crypto asset security if it meets the definition of a security, which the Securities Act defines to include “investment contract,” i.e., if it constitutes an investment of money, in a common enterprise, with a reasonable expectation of profit derived from the efforts of others.
As described in greater detail below, during the relevant period, Ishan provided material, nonpublic information about, and Nikhil and Ramani traded in, at least nine crypto asset securities that meet this definition.”