Binance, among the largest crypto exchanges in 2022 was issued a summons by the Central Bank of Uruguay. The summons was issued as the central bank sees crypto savings products that are issued by Binance can only be issued by banks or companies that are listed in Uruguay’s stock market.
source: binance
Binance are not authorized by the regulator to issue crypto savings product. The central bank requested Binance to stop marketing investment products as savings products and stated the following:
‘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.’
Binance issued a swift reply to the central bank and has began discussing the matter with the regulator according to recent reports:
‘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.’
At the time of this writing there are no cryptocurrency regulations in Uruguay.
High Interest in Crypto Savings
When Bitcoin was trading around $2,000 several years ago, invesors purchased the cryptocurrency as a long term investment. The elderly bought Bitcoin as an inheritence for their children and grand children.
The majority of investors that entered the crypto markets following BTC rally explored different methods for long-term investments. According to recent studies, Africa have the largest cryptocurrency market.
in South Africa crypto is viewed as an alternative investment. In Nigeria however, cryptocurrencies are used for savings. Due to NGN weakness against the US Dollar (currently trading around 415 NGN for 1 USD), Nigerians find stablecoins and crpytocurrencies such as Bitcoin and Ethereum more attractive.
Fidelity were the first to introduce 401(k) retirement plans in Bitcoin
