The Central Bank of Uruguay made a call to Binance, one of the largest exchanges in the world, due to the series of cryptocurrency-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 companies that issue shares on the national stock exchange. Uruguay does not yet have a specific regulation on cryptocurrencies.
Central Bank of Uruguay to review Binance savings products
Cryptocurrency economy products are in the crosshairs of various regulators in countries around the world. The Central Bank of Uruguay is keeping an eye on them and recently made a call to Binance due to their product portfolio in the country. According to the institution, Binance is offering them as savings-focused alternatives, without any kind of registration or authorization by regulators.
The institution clarified that:
The call to the general public to invest their savings can only be made through financial intermediation institutions authorized to collect deposits on the market or as an issuer registered in the stock exchange register.
Additionally, the Central Bank of Uruguay has asked Binance to stop advertising these investment products as a savings-focused activity.
Answers from Binance
The cryptocurrency exchange did not take long to respond to this communication and, according to Bloomberg Line, it is already talking about the matter with the Central Bank of Uruguay. The company has the possibility to issue a defense and present its point of view on investment products.
Binance Uruguay stated that it is focused on compliance issues, valuing regulation as the only way this industry can expand and reach a general audience. Binance also stated:
Binance reinforces that it is leading the way globally in the development of the cryptocurrency and blockchain ecosystem, working collaboratively with regulators, legislators, governments and law enforcement authorities to ensure the safest environment.
This incident may start a debate about cryptocurrency assets, which has been separated from the topic due to the relative lack of popularity of cryptocurrencies in the country compared to others in Latin America such as Venezuela, Argentina and Colombia. In fact, there is still no specific cryptocurrency law in Uruguay. Last year, the Central Bank of Uruguay issued a roadmap announcing cryptocurrency-related activities with the aim of passing a cryptocurrency law in the future.