Binance announced this week that direct withdrawal and deposits were suspended in Brazil. The exchange issued a statement in which it announced that this resulted from a change of payment partner in the country and that it would take legal action against it. However, the partner clarifies that Binance has not adapted to provide the new KYC information required by Brazil’s central bank.
Binance halts real linked movements
Binance stopped direct deposits and real withdrawals in Brazil this week following a change in secondary payment provider. The exchange announced that it is making the necessary changes to address this issue in the future in order to continue offering these services to its clients in Brazil. In a blog post explaining the situation, Binance said:
[Binance] will promote a smooth transition in the coming weeks and that it is taking all necessary steps, including legal related to Capital, to ensure that users are not affected by the change.
Additionally, the exchange said Brazil was “an extremely relevant market for the company” and that it would continue to invest and expand its services in the country.
Capital, the bank that provides payment services for Binance and other exchanges in the country, clarified that this situation is related to the new requirements that the Central Bank of Brazil asks from the participants of its Pix payment platform. According to Capital’s statements, the bank has updated its technology platform to adapt to these changes and has asked its partners to also adapt their platforms to these new changes.
The company said:
Partner exchanges Kucoin and Huobi have adapted their systems to the changes that have taken place in the Capital platform and the services provided to their users in transactions with reais occur regularly,
This means that according to them, only Binance has failed to adapt its technological platform to comply with the new requirements posed by the central bank of Brazil. The bank concluded by specifying that these requirements could not be circumvented, these being “mandatory for its operation and that of its commercial partners”.
Binance’s new payment partner will be announced soon, and the company has just called it a “local payment provider with extensive experience”. In the meantime, Binance is directing its users to other withdrawal and deposit methods. The exchange recently had to suspend bitcoin (BTC) withdrawals globally due to hardware wallet failures during wallet consolidation.
What do you think of Binance’s suspension of withdrawals and deposits in Brazil? Tell us in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons