all about cryptop referances
The Central Bank of Uruguay has issued a summons to Binance, one of the largest exchanges in the world, due to the range of crypto-based savings products it offers in the country. According to the bank, these savings products can only be created through verified banking institutions or by companies that issue shares on the national stock market. Uruguay still has no cryptocurrency-specific regulation.
Savings products for cryptocurrency are in the spotlight of several regulators in countries around the world. Uruguay’s central bank has these in its sights, and it recently issued a subpoena to Binance over its product portfolio in the country. According to the institution, Binance offers these as savings-focused options, without any kind of registration or authorization from regulators.
The institution clarified that:
The call to the general public for use of their savings can only be made through financial intermediaries who are authorized to collect deposits in the market or who are issuers registered in the stock market register.
Furthermore, the Central Bank of Uruguay called Binance to stop advertising these investment products as a savings-focused activity.
The cryptocurrency exchange did not take time to respond to this communication, and according to Bloomberg Linea, it is already in talks about the issue with the Central Bank of Uruguay. The company has the opportunity to present a defense and explain its view on the investment products.
Binance Uruguay stated that they are focused on compliance issues and appreciate regulation as the only way this industry can expand and reach a mainstream audience. Binance also declared:
Binance reinforces that it is a leader globally in the development of the crypto and blockchain ecosystem, working with regulators, legislators, governments and law enforcement authorities to ensure the safest environment.
This event could start a debate about cryptocurrency assets, which have 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 cryptocurrency-specific law in Uruguay. Last year, the Central Bank of Uruguay issued a roadmap announcing crypto-related activities with the goal of getting a cryptocurrency bill passed in the future.
What do you think of Binance and its savings-focused product portfolio in Uruguay? Tell us in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or an endorsement or recommendation of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on content, goods or services mentioned in this article.
