The Central Bank of Uruguay has issued a summon to Binance, one of the biggest exchanges in the world, due to the series of crypto-based savings products they are offering in the country. These savings products, according to the bank, can only be made through verified banking institutions or by companies that issue equity in the national stock market. Uruguay still has no cryptocurrency-specific regulation.
Central Bank of Uruguay to Scrutinize Binance Savings Products
Cryptocurrency savings products are in the spotlight of several regulators of countries all over the world. The Central Bank of Uruguay has these in its sights, and it has recently issued a summon to Binance due to its product portfolio in the country. According to the institution, Binance is offering these as savings-focused alternatives, without any kind of registration or authorization from regulators.
The institution clarified that:
The call to the general public for the application of their savings can only be done through financial intermediation institutions authorized to collect deposits in the market or as an issuer registered in the stock market registry.
Furthermore, the Central Bank of Uruguay called Binance to stop advertising these investment products as a savings-focused activity.
The cryptocurrency exchange took no time in answering this communication, and according to Bloomberg Linea, is already having conversations about the issue with the Central Bank of Uruguay. The company has the possibility of issuing a defense and explaining its point of view regarding the investment products.
Binance Uruguay stated that they are focused on compliance issues, appreciating regulation as the only way in which this industry can expand and reach a mainstream audience. Binance also declared:
Binance reinforces that it is leading the way globally in the development of the crypto and blockchain ecosystem, working collaboratively with regulators, legislators, governments, and law enforcement authorities to ensure the most secure environment.
This incident might start a debate about cryptocurrency assets, that has been separated from the issue due to the relative lack of popularity of crypto in the country when compared to others in Latam, like Venezuela, Argentina, and Colombia. In fact, there is still no cryptocurrency-specific law in Uruguay. Last year, the Central Bank of Uruguay issued a roadmap announcing crypto-related activities with the objective of getting a cryptocurrency bill passed in the future.
What do you think about Binance and its savings-focused product portfolio in Uruguay? Tell us in the comments section below.