Binance, the world’s largest crypto exchange, has finally filed with the United States Exchange and Trade Commission (SEC), as a result, one cryptocurrency previously traded on Binance has now been delisted, namely AMP.
Binance has finally removed one of the cryptocurrencies that the SEC classified as securities (securities) and linked in the case insider trading which previously happened on the crypto exchange Coinbase.
“We believe that, in some circumstances, removing cryptocurrencies from trading is the best decision to protect our users from unnecessary risk,” Binance said. in an official statementMonday (January 7, 2022).
Last month, the SEC found former Coinbase product manager Ishan Wahi, his brother and a friend charged with regulatory violations for committing insider trading for 25 cryptocurrencies, 9 of which are classified as securities, and one of the 9 was previously traded on Binance, AMP crypto.
Binance says that of the nine tokens, only Amp is listed on its platform. The other eight tokens mentioned in the complaint are RLY, DDX, XYO, RGT, LCX, POWR, DFX and KROM. According to Blockworks Research, Binance’s delisting will take effect on August 15, 2022.
Binance is still waiting for other cryptocurrencies including securities and Binance is ready to remove them.
Crypto as securities (securities)
The SEC often confuses the public about which cryptocurrencies are considered securities (efes). SEC Chairman Gary Gensler has previously argued that a cryptocurrency is a security, using the Howey test, if it is sold as part of the profits of the company or organization that issued the cryptocurrency.
“If someone is raising money by selling tokens, and the buyer anticipates a profit based on the group’s effort to sponsor the seller, that fits into something that is a security,” Gensler told CNBC in August 2021.
The previous president, Jay Clayton, said in 2018 that cryptocurrencies (cryptocurrency) like Bitcoin is not a security because BTC is a substitute for currency fiat.
Binance itself, including Coinbase, has repeatedly sought confirmation from the SEC about the ambiguity of the classification of cryptocurrencies, which in principle are multiple, although the SEC published a long record on this in 2019.
“Existing securities rules do not work for digital assets,” Coinbase said.
US Eyes Binance for 2017 Binance Coin (BNB) ICO
Anton Chashchin, managing partner of Bitfrost.io, said Blockade that Gensler’s motive to recognize most crypto assets as securities goes to the heart of the great debate about how digital assets should be defined?
“Some see it as a currency, while others see it as a security. This has been the source of international debate between regulatory bodies and the crypto industry,” he said.
Binance’s move to remove AMP crypto is also in line with the aforementioned SEC move Bloomberginvestigates crypto BNB which are called securities. [ps]