Central Bank of Uruguay Summons to Binance Due to Its Savings Focused Cryptocurrency Products

Central Bank of Uruguay

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.


Binance Answers

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.

Earning Passive Income With Crypto

Related Posts

Brian Armstrong Says the More Crypto Regulation, the Better for Coinbase — CEO Discusses Alleged SEC Investigation

Coinbase CEO Brian Armstrong says “the more regulation there is for crypto, the better it is for Coinbase.” He revealed an inquiry from the U.S. Securities and…

Fractional NFT Markets Slide 76% in Value in 7 Months, Diced-up Doge NFT Still Leads the Pack

When non-fungible token (NFT) collectibles became popular, the fractionalized NFT market grew past the $200 million range seven months ago in December 2021. Since then, the fractionalized…

Bored Ape Yacht Club (BAYC) NFT Sales Test New Higher-Low Slipping More Than $290M

Similar to more than 90% of NFTs, BAYC saw a significant reduction in sales volume due to negative market sentiment during the seventh month of the year. …

Crypto Use in Metaverse Could Threaten Financial Stability, Says BoE

The prospective widespread use of cryptocurrencies within a fully developed metaverse could pose a systemic risk to financial stability, according to Bank of England researchers. Were the…

Troubled CoinFLEX Files for Restructuring in Seychelles

On Tuesday, the troubled Cryptocurrency exchange, CoinFlex, filed for restructuring in a Seychelles court to resolve a shortfall due to a counterparty failing to make a margin…

Elon Musk Sells Tesla Shares Worth Nearly $7 Billion — Plans to Buy TSLA Stock Back if Twitter Deal Falls Through

Elon Musk has sold nearly 8 million Tesla shares worth almost $7 billion. “It is important to avoid an emergency sale of Tesla stock” if Twitter forces…