The Central Bank of Uruguay has issued a summons to Binance, one of the largest exchanges in the world, due to the series of crypto-based savings products it offers in the country. These savings products, according to the bank, can only be realized through verified banking institutions or by companies that issue shares on the national stock market. Uruguay still does not have specific cryptocurrency regulations.
Central Bank of Uruguay to Review Binance Savings Products
Cryptocurrency savings products are in the spotlight of several country regulators around the world. The Central Bank of Uruguay has them in sight, and it recently issued a summons to Binance due to its product portfolio in the country. According to the institution, Binance offers them as savings-focused alternatives, without any type of registration or authorization from regulators.
The institution clarified that:
The appeal to the general public for the application of its savings can only be made through financial intermediation institutions authorized to collect deposits on the market or as an issuer registered in the securities register.
Additionally, the Central Bank of Uruguay has asked Binance to stop advertising these investment products as a savings-oriented business.
Binance Answers
The cryptocurrency exchange was quick to respond to this communication, and according to Bloomberg Linea, already has conversations on the matter with the Central Bank of Uruguay. The company has the opportunity to issue a defense and present its point of view on investment products.
Binance Uruguay said it is focused on compliance issues, valuing regulation as the only way for this industry to grow and reach a mainstream audience. Binance also said:
Binance confirms that it is leading the way globally in the development of the crypto and blockchain ecosystem, working in collaboration with regulators, legislators, governments and enforcement authorities. laws to ensure the most secure environment.
This incident could spark a debate over cryptocurrency assets, which has been separated from the issue due to the relative lack of popularity of crypto in the country compared to others in Latam, such as Venezuela, Argentina and Colombia. In fact, there is still no specific cryptocurrency law in Uruguay. Last year, the Central Bank of Uruguay Posted a roadmap announcing crypto-related activities with the goal of having a cryptocurrency bill adopted in the future.
What do you think of Binance and its savings-focused product portfolio in Uruguay? Tell us in the comments section below.
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