Due to the availability of crypto-based savings options in Uruguay, the Central Bank of Uruguay issued Binance a summons. According to the bank these savings products can only be obtained through accredited banking institutions and companies that have equity on the national stock exchange. Uruguay still has no cryptocurrency-specific regulation.
Central Bank of Uruguay will review Binance Savings Products
Many countries have been focusing on cryptocurrency products for savings. They are being pursued by the Central Bank of Uruguay, who recently sent Binance a summons due to their product portfolio. These are savings-focused options that Binance offers, according to the institution. They do not require any registration from regulators.
According to the institution,
Financial intermediation agencies that can collect deposit in the market and issuers registered on the stock market registry are the only ones who can make the call to the public regarding the use of their savings.
Binance was also urged by the Central Bank of Uruguay to discontinue advertising investment products that are savings-oriented.
Binance Solutions
This communication was quickly answered by the cryptocurrency exchange. Bloomberg Linea reports that they are already in discussions with the Central Bank of Uruguay about the matter. This company may be able to issue a defense or explain its position regarding investment products.
Binance Uruguay said that they were focused on compliance issues and consider regulation to be the only avenue for their industry’s growth. Binance Uruguay also stated:
Binance demonstrates that it continues to lead the global development of crypto and blockchain technology. Binance works with governments and regulators to create the best possible environment.
The incident could spark a discussion about crypto assets. However, this issue has been largely omitted due to cryptocurrency’s relative popularity in Uruguay compared with other Latam countries like Colombia, Argentina and Venezuela. In fact, there is still no cryptocurrency-specific law in Uruguay. In order to make it easier for cryptocurrency-related activity, the Central Bank of Uruguay released a roadmap in 2017.
How do you feel about Binance’s savings-oriented product portfolio in Uruguay and Binance? Comment below.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. It does not constitute an offer, solicitation, or recommendation of buying or selling any goods, services or companies. Bitcoin.com doesn’t offer investment, tax or legal advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.