Global crypto exchange Binance has halted direct deposits and withdrawals in Brazilian reals via the payment system Pix after it terminated the partnership with the local payment gateway Capitual.
The exchange stated that it will make the required improvements to rectify the problem in the future so that it could continue to provide service to its Brazilian consumers.
Binance noted in a blog post that it will support a transition in the coming weeks and that it is taking all required procedures, including legalities relating to Capitual, in order to guarantee that users are not adversely affected by the shift. Binance stressed that Brazil is an important market for the company and that it will continue to expand its services in the country.
“Binance can confirm that Capitual no longer provides payment services to their users due to actions taken by Capitual that conflict with Binance’s values. Binance will announce a new Brazilian partner in the coming days. With the change, Binance will offer a better solution for clients while in the process of acquiring the local brokerage Sim;paul, authorized by the Central Bank and the Securities and Exchange Commission (CVM).” said Binance spokesperson.
“It is critical to note that Binance’s investigations team coordinates with local authorities on a regular basis. This includes work with Federal Police to bring Glaidson Acácio dos Santos to justice in 2021 by freezing his accounts and identifying potentially illicit revenue streams on multiple platforms across the globe.” Binance spokesperson added.
Capitual, the bank that provides payments services for Binance and other exchanges in the country, clarified that this situation had to do with the new requirements that the Central Bank of Brazil is asking from participants of its Pix payments platform. The bank updated its technological platform to adapt to these changes and asked its partners to adapt their platforms to these new changes too.
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Capitual said that the partner exchanges Kucoin and Huobi have already adapted their systems to the changes and continue to provide services to their users in real-denominated transactions. This means that according to them, only Binance has failed to adapt its technological platform to comply with the new requirements asked by the central bank of Brazil.