Binance announced this week that direct withdrawals and deposits have been suspended in Brazil. The exchange issued a statement, where it announced that this was the result of a change in the country’s payment partners and that it would take legal action against them. However, the partners said that Binance did not adapt to provide the new KYC information required by Brazil’s central bank.
Binance halts reals-related moves
Binance this week suspended real-based direct deposits and withdrawals in Brazil following a change in secondary payment providers. The exchangeannounced that it will make the necessary changes to resolve this issue going forwardin order to continue offering these services to its Brazilian customers. In a blog post explaining the situation, Binance stated.
[Binance] has made it clear that it is taking all necessary steps, including those related to Capitol legal, to facilitate a smooth transition in the coming weeks and to ensure that users are not adversely affected by this change.
The exchange further stated that Brazil is “an extremely important market for the company” and that it will continue to invest in the country and expand its services.
Capitual, the bank that provides payment services to Binance and other exchanges in the country, revealed that this situation is related to the new requirements that the Brazilian Central Bank is asking of participants on the Pix payment platform. Capitual’s statement revealed that the bank updated its technical platform to adapt to these changes and asked its partners to adapt to these new changes as well.
The company said,:
Partner exchanges Kucoin and Huobi adapted their systems to the changes made in the Capitual platform, and the services offered to users in trading with the Real happen regularly,
This means, according to them, that only Binance has failed to adapt its technical platform to comply with the new requirements sought by the Brazilian Central Bank. The bank concludes by stating that these requirements are “mandatory for its operations and those of its commercial partners” and cannot be sidestepped.
Binance’s new payment partner will be announced soon, and the company just referred to it as a “local payment provider with extensive experience.” Meanwhile, Binance is directing users to alternative withdrawal and deposit methods. The exchange recently had to suspend global bitcoin (BTC) withdrawals due to a hardware wallet failure following a wallet consolidation.
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