The Central Bank of Uruguay has issued a subpoena to Binance, one of the world’s largest exchanges, for offering a range of crypto-based savings products in the country. According to the bank, these savings products can only be produced through verified banking institutions or companies that issue shares on the national stock market. Uruguay still has no regulation for cryptocurrencies.
Central Bank of Uruguay Review Binance Savings Product
Cryptocurrency savings products are under the scrutiny of regulators in several countries around the world. It has been targeted by the Central Bank of Uruguay, which recently issued a subpoena to Binance due to its product portfolio in the country. According to the agency, Binance offers these as a savings-focused alternative without any form of registration or authorization from regulators.
The agency clarified:
The public can only be called upon to use their savings through authorised financial intermediaries that take deposits in the market or issuers registered with the stock market registry.
Additionally, the Central Bank of Uruguay called on Binance to stop promoting these investment products as savings-focused activities.
The cryptocurrency exchange responded to this communication immediately, and according to Bloomberg Linea, it has spoken to the Central Bank of Uruguay about the issue. It is possible for the company to issue a defense and explain its views with respect to the investment product.
Binance Uruguay said they are focused on compliance issues and see regulation as the only way the industry can scale and reach mainstream audiences. Binance also announced:
Binance emphasized that it is a global leader in the development of the crypto and blockchain ecosystem, working with regulators, legislators, governments and law enforcement agencies to ensure the safest environment.
The event could spark a debate about crypto assets, which has been separated from the issue due to the relative lack of popularity of cryptocurrencies in the country compared to other countries in Latin America such as Venezuela, Argentina and Colombia. In fact, Uruguay still has no laws specifically targeting cryptocurrencies. Last year, the Central Bank of Uruguay published a roadmap announcing crypto-related activities with the aim of passing a cryptocurrency bill in the future.
What do you think of Binance and its savings-oriented product portfolio in Uruguay? Let us know in the comments section below.
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