Binance Delists Amp Due to SEC Security Classification

Transcript

00:00back to decentralized news quick news story so binance is said to be delisting amp which is a

00:06token that was labeled a security by the sec recently with regards to an issue that's ongoing

00:13with the pursuit of uh some irregularities at coinbase so amp trading won't resume in the u.s

00:23until there's more clarity on the situation with the sec regulators so if you are obviously holding

00:29amp on coinbase this is something you should be aware of the u.s regulated arm of crypto exchange

00:36binance is now delisting one of those tokens that the securities and exchange commission

00:42recognized as a security in a recent insider trading case they said that they believe that in some

00:48cases delisting an asset just best protects the community from undue risk this is according to

00:55binance so last month the u.s regulator did declare that uh former coinbase product manager he shan

01:02wahi brother and a friend of his ahead of multiple crypto um listing announcements were putting trades

01:11and uh insider trading and they allegedly bought uh at least about 25 cryptocurrencies based on

01:18confidential information letting them some 1.5 million dollars in in total uh and they say that

01:25nine of these tokens were actually securities binance said of those nine tokens only amp is listed on their

01:31platform and uh eight other tokens listed in the complaint like a rally ddux xyo rgt power ledger etc

01:43um are not uh really uh something that they should be worried about so the flex networks am token itself

01:51is intended to facilitate merchant payments and it holds a market cap of about 638 million

01:57it is down nearly 10 percent in the last 24 hours according to blockchain works research

02:03binance's delisting will actually be effective from august 15 so am trading may resume on its platform

02:10at some point but exchange said it's uh waiting for uh clarification on the tokens classification

02:15beyond bitcoin there remains ambiguity about the secs for more stance against uh or on uh cryptos in

02:23general and chairman gary gensler has singled out bitcoin as the only crypto asset that should be

02:29regulated as a commodity he told cnbc in august 2021 that regulators consider many others to be securities

02:36under the highway test so if somebody is raising money selling a token and the buyer is anticipating

02:42profits based on the efforts of that group to sponsor to sponsor the seller that fits into something

02:47that's a security according to him and there's a predecessor predecessor uh jay clayton in 2018 said

02:53that uh cryptocurrencies like bitcoin are not securities and they are uh replacements of our

02:59sovereign currencies so binance is obviously trying to really just play safe here following this

03:04sec probe and uh trying to make sure uh this is not going to be something that's going to give them

03:10a necessary headache let me know what your thoughts are on this uh story and obviously what else we can

03:16expect in terms of uh what is going to be classified securities and what is not going to be classified

03:21securities and what mayhem is going to become in uh um apparent in the crypto markets as soon as

03:29that happens but uh like share subscribe turn on the notifications check out links in the description

03:34to my books also go to our telegram and our discord server and support the channel man i'll see you guys

03:40in the next video peace