Binance announced this week that direct withdrawals and deposits have been suspended in Brazil. The exchange issued a statement announcing that this was the result of a change of payment partner in the country and that it would take legal action against it. However, the partner states that Binance has not adapted to provide the new KYC information required by the Central Bank of Brazil.
Binance halts real-world movements
Binance stopped real-world direct deposits and withdrawals in Brazil this week due to a change in its secondary payment provider. The exchange announced that it will make the necessary changes to address this issue going forward in order to continue offering these services to its customers in Brazil. In a blog post explaining the situation, Binance explained:
[Binance] will facilitate a smooth transition over the coming weeks and will take all necessary steps, including taking legal action in relation to Capital, to ensure users are not impacted by the change.
In addition, the exchange stated that Brazil is “an extremely relevant market for the company” and that it will continue to invest in the country and expand its services.
Capital, the bank that provides payment services for Binance and other exchanges in the country, clarified that this situation has to do with the new requirements that the Central Bank of Brazil is asking participants of its Pix payment platform. According to Capitual, the bank has updated its technological platform to adapt to these changes and has asked its partners to also adapt their platforms to these new changes.
The company explained:
Partner exchanges Kucoin and Huobi have adapted their systems to the changes that have taken place on the Capitual platform, and the services provided to their users in transactions with Reais are taking place regularly.
This means that, according to them, only Binance has failed to adapt its technological platform to the new requirements of the Central Bank of Brazil. The bank concluded by stating that these requirements could not be circumvented as they were “mandatory to its operations and those of its trading partners”.
Binance’s new payments partner will be announced soon, and the company simply described it as a “local payment provider with extensive experience.” In the meantime, Binance is directing its users to alternative withdrawal and deposit methods. The exchange recently had to pause Bitcoin (BTC) withdrawals worldwide due to hardware wallet failures in wallet consolidation.
What do you think of the suspension of Binance withdrawals and deposits in Brazil? Tell us in the comment section below.
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