Central Bank of Uruguay Summons to Binance Due to Its Savings Focused Cryptocurrency Products
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. Tags in this story Binance, central bank of uruguay, Compliance, Cryptocurrency, Regulation, savings products, Uruguay
What do you think about Binance and its savings-focused product portfolio in Uruguay? Tell us in the comments section below. Sergio Goschenko
Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved. US, UK Regulators Partner on Broader Crypto Regulation REGULATION | 8 hours ago China Bank Account Freeze Controversy: Authorities Reveal Latest Reimbursement Plan, Three Officials Now Under Investigation REGULATION | 1 day ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleYOLOREKT dApp Is Live Now. Discover More About the Gamified-Social Price Prediction Platform. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any 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 any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItDraft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament
A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market ... read more.SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design