Binance has announced that direct withdrawals and deposits in Brazil have been suspended. According to the exchange, it stated in a statement that this happened due to changes in Brazil’s payments partner. It will also be taking legal actions against them. However, the partner states that Binance did not adapt to provide the new KYC information required by Brazil’s central bank.
Real Movements Stopped by Binance
Binance has stopped Brazilian real-based withdrawals and direct deposits this week due to a shift in the secondary payment provider. This exchange stated that they were making changes in order to address this issue in the future and continue offering the services to Brazilian customers. Binance wrote in a blog about the current situation:
[Binance]The company will facilitate a smooth transition within the coming weeks. It is also taking all legal steps related to Capitual to make sure that users aren’t adversely affected.
Furthermore, the exchange stated that Brazil was “an extremely relevant market for the company,” and that it would continue to invest and expand services in the country.
The Capitual Answers
Capitual, the Bank that offers payments services in Binance, and for other foreign exchanges, stated that it was caused by the Central Bank of Brazil asking participants of the Pix payments platform to meet new standards. Capitual claims that the bank has updated its technology platform in order to adjust to these changes, and it asked its partners for their adaptations.
According to the company:
Kucoin, Huobi and other partner exchanges have adapt their systems to accommodate the Capitual platform changes and to provide services to users who use transactions with reais.
They concluded that only Binance had failed to conform to new Brazilian requirements. The bank concluded by stating that these requirements could not be sidestepped, with these being “mandatory for its operation and that of its commercial partners.”
Binance’s new payments partner will be announced soon, and the company just referred to it as a “local payment provider with extensive experience.” In the meanwhile, Binance is directing its users to alternative withdrawal and deposit methods. Due to wallet consolidation failures, Binance had to suspend bitcoin withdrawals worldwide.
Let us know your thoughts about Binance’s decision to suspend withdrawals or deposits from Brazil. Leave your comments below.
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