Uruguay’s central bank has issued a summons to Binance, one of the largest exchanges in the world, for a series of crypto-based savings products offered in the country. According to the bank, these savings products can only be made through verified banking institutions or companies that issue shares in the domestic stock market. Uruguay does not yet have regulations specific to cryptocurrencies.
Uruguay’s central bank will scrutinize Binance’s savings products
Cryptocurrency savings products are in the spotlight of several regulators in countries around the world. The Central Bank of Uruguay has these in mind and recently issued a summons to Binance due to its portfolio of products in the country. According to the agency, Binance offers these as a savings-focused alternative without any kind of registration or approval from the regulator.
The agency clarified that.
Calls for the use of savings to the general public can only be made through financial intermediaries authorized to collect deposits in the market or as registered issuers in the stock market.
In addition, the Central Bank of Uruguay has asked Binance to stop advertising these investment products as a savings-focused activity.
Binance’s response
The cryptocurrency exchange did not take long to respond to this communication and, according toBloomberg Linea,has already had conversations with the Uruguayan central bank about the issue. The company may issue a defense and explain its point of view on investment products.
Binance Uruguay said it is evaluating regulation and focusing on compliance issues as the only way the industry can expand and reach the mainstream. Binance also declared that.
Binance is a global leader in the development of the crypto and blockchain ecosystem, working with regulators, legislators, governments and law enforcement authorities to reinforce that we are ensuring the most secure environment.
This incident may start a discussion about cryptocurrency assets that has been disconnected from the issue because crypto is relatively unpopular in this country compared to other countries in Latam such as Venezuela, Argentina, and Colombia. In fact, Uruguay does not yet have a law specific to cryptocurrencies. Last year, the Central Bank of Uruguay published a roadmap announcing crypto-related activities with the goal of passing a cryptocurrency bill in the future.
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