Binance Bows To The US SEC, Here's What It Has To Do

Binance, the world's largest crypto exchange, has finally submitted to the United States Exchange and Trade Commission (SEC), as a result, one crypto that was previously traded on Binance has now been removed, namely AMP.

Binance has finally removed one of the cryptocurrencies classified by the SEC as securities and linked to an insider trading case that previously occurred on the Coinbase crypto exchange.
"We believe that, in some circumstances, removing cryptocurrencies from being traded again is the best decision to protect our users from undue risk," Binance said in its official announcement Monday (1/7/2022). Binance says 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, the delisting of Binance will be effective from August 15, 2022.

Binance is still waiting for other cryptocurrencies including securities and Binance is ready to remove them.Crypto as a SecurityThe SEC often confuses the public about which cryptocurrencies are considered securities (efe). SEC Chairman Gary Gensler previously asserted that a security, using the Howey Test, is if the cryptocurrency is sold as part of the profits of the company or organization that issued the crypto.

“If someone raises money by selling tokens and the buyer anticipates a profit based on the group's efforts to sponsor the seller, it fits into something that is a security,” Gensler told CNBC in August 2021.The previous chairman, Jay Clayton, said in 2018 that cryptocurrencies such as Bitcoin were not securities because BTC was a substitute for fiat currency.

Binance itself, including Coinbase, has repeatedly requested confirmation from the SEC about the ambiguity of the classification of cryptocurrencies, which in principle are multifaceted, even though in 2019, the SEC has published a long record of this.

“The existing rules for securities don't work for digital assets,” Coinbase said.Anton Chashchin, Managing Partner of Bitfrost.io, told Blockworks that Gensler's motive for most crypto assets to be recognized as securities cuts to the heart of the big debate, how should digital assets be defined?

“Some see it as a currency while others see it as a security. This has been a source of international debate between regulatory authorities and the crypto industry,” he said.

Binance's move to abolish the AMP cryptocurrency is also in line with the SEC's move that Bloomberg mentions, which is investigating the so-called BNB cryptocurrency as a security.